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The Asian Development Bank (ADB) has partnered with some of the world’s biggest insurers to provide up to USD 2.5 billion in lending for small businesses, affordable housing, and other underserved borrowers across Asia and the Pacific.
The participating insurers are 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 Co. Ltd., and Tokio Marine HCC.
Meanwhile, Sompo Japan Insurance, Mitsui Sumitomo Insurance, HDI Global, and SCOR Business Solutions are joining the programme as first-time participants.
The five-year agreement builds on and expands a credit insurance programme launched in 2022.
The Master Framework Program for Financial Institutions will increase ADB’s capacity to provide longer-term financing through banks and other financial institutions for borrowers that struggle to obtain credit.
ADB explained that it uses credit insurance to stretch existing resources and direct more financing into capital-scarce markets. By sharing risk with private insurers, ADB can support more lending without requiring additional capital.
Under the agreement, participating insurers will cover part of the loss if a financial institution fails to repay an ADB loan, and not make the loans themselves. Their coverage allows ADB to transfer some of the risk from its balance sheet, free capital for new loans; and manage its exposure across markets and borrowers.
Additionally, ADB plans to use the additional lending capacity to provide more financing to commercial banks and other financial institutions. In return, these institutions can then extend more credit to micro, small, and medium-sized enterprises.
The agreement was signed at a ceremony in Tokyo on 31 July 2026, attended by Masato Kanda, President, ADB, along with representatives of Tokio Marine, Sompo Japan Insurance, and Mitsui Sumitomo Insurance.
Kanda commented, “ADB is getting more money to where it is needed most: small businesses, lower-income families, and communities that struggle to access finance. 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.”
Masahiro Koike, President and Group Chief Executive Officer, Tokio Marine Group, said, “Tokio Marine Group is pleased to deepen its longstanding partnership with ADB through this expanded program. The agreement demonstrates how multilateral development banks and the insurance industry can work together to manage risk responsibly and support sustainable and inclusive growth. We look forward to continuing our collaboration with ADB and the other participating insurers.”
Mikio Okumura, Group CEO, SOMPO Group, added, “SOMPO Group is delighted to be expanding its partnership with ADB and supporting its mission to assist developing countries in the region. As SOMPO’s reason for existence is to continuously deliver services beneficial to ‘health, wellbeing and financial protection,’ we are truly honoured to be part of this endeavour.”
Shinichiro Funabiki, Representative Director and President & CEO, MS&AD Insurance Group Holdings, said, “As a leading insurance group in Asia, we are honoured to partner with ADB on this important initiative. By bringing our underwriting expertise, risk capacity and collaboration across MSIG, we are pleased to contribute to sustainable economic development and a more resilient future across Asia and the Pacific.”
The post ADB partners with global insurers to finance underserved borrowers with upto $2.5bn appeared first on ReinsuranceNe.ws.
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