The Asian Development Bank (ADB) is partnering with global insurers to unlock up to US$2.5bn in additional lending capacity for small businesses, affordable housing and other underserved borrowers across Asia Pacific, the bank said on Friday.
The five-year agreement expands ADB’s credit insurance programme launched in 2022, enabling the multilateral lender to provide more long-term financing through banks and other financial institutions under its Master Framework Program for Financial Institutions.
“ADB is getting more money to where it is needed most: small businesses, lower-income families, and communities that struggle to access finance,” said ADB President Masato Kanda. “By sharing risk with leading insurers, we can lend more through financial institutions, support more jobs and homes, and make our capital work harder for development.”
Under the programme, participating insurers will cover part of the losses if a financial institution defaults on an ADB loan. The insurers will not provide loans directly but will help ADB transfer part of its credit risk, freeing capital for additional lending.
ADB said the expanded capacity will allow it to increase financing to commercial banks and other financial institutions, which can then extend more credit to micro, small and medium-sized enterprises (MSMEs), including women-led businesses, as well as lower-income households seeking housing and essential financing.
The programme includes 12 participating insurers: AXA XL, Chubb, Everest, HDI Global, Liberty, Mitsui Sumitomo Insurance, SCOR Business Solutions, Sompo Japan Insurance, The Hartford, Swiss Re Corporate Solutions, Tokio Marine & Nichido Fire Insurance, and Tokio Marine HCC.
Sompo Japan, Mitsui Sumitomo, HDI Global and SCOR are joining the programme for the first time.
Insurer executives have welcomed the expanded partnership, highlighting the role of risk-sharing mechanisms in supporting sustainable development across the region.
Masahiro Koike, President and Group CEO of Tokio Marine Group, said the agreement demonstrates how multilateral development banks and insurers can collaborate to manage risks and support inclusive growth.
SOMPO Group CEO Mikio Okumura said the company was pleased to expand its partnership with ADB and contribute to its mission of supporting developing economies.
Shinichiro Funabiki, Representative Director and President and CEO of MS&AD Insurance Group Holdings, said the insurer would contribute its underwriting expertise, risk capacity and MSIG network to support sustainable economic development and resilience across Asia Pacific.
