Members of the Bermuda insurance industry will figure in a World Bank unit’s multibillion dollar credit insurance policy that will bolster emerging markets while addressing poverty and climate change.

The deal will include support in developing regions for small businesses, including women entrepreneurs, in one of the world’s largest efforts aimed at bringing economic certainty to more nations.

International Finance Corporation, a member of the World Bank Group, has signed a $3.5 billion credit insurance policy with 13 global insurance companies under its Managed Co-Lending Portfolio Programme.

IFC said the signing is a milestone that will support economic activity and foster development in emerging markets.

The 13 insurers, many either headquartered on the island or having a presence in Bermuda, include continuing participants Axa XL, Everest, Aspen, Liberty Specialty Markets, Munich Re, and Tokio Marine Group.

Axis Capital, Sompo International, The Hartford, Swiss Re, HDI Global Specialty, Allianz Trade, and Scor are joining the programme for the first time.

MCPP Financial Institutions III mobilises the risk capacity of leading insurers to support more than $7 billion of new IFC medium and long term lending to commercial banks and nonbank financial institutions over the next six years.

IFC said the programme will increase access to finance for micro, small and medium enterprises, including women-owned businesses, as well as firms addressing climate change.

It is IFC's largest ever mobilisation in a single agreement, the organisation said, and will unlock the insurance industry's risk-bearing capacity to increase private capital deployment and enable billions of dollars of additional development finance to support economic growth, job creation and poverty reduction.

"Insurance is not just about managing risks. It is also about underwriting human potential and development in emerging economies," said John Gandolfo, IFC vice-president and treasurer, treasury and mobilisation.

"This new facility demonstrates the opportunity for leading insurers and development finance institutions to work together to solve the world's most urgent development challenges."

Mike Karmilowicz, president and chief executive officer of Everest's primary insurance division, said: "The MCPP is a great example of IFC's proven ability to mobilise private capital by harnessing the strong balance sheets of global insurance companies to address critical development challenges in emerging markets.

"Everest Insurance is proud to partner with IFC to reduce poverty and promote sustainable development around the world."

The new programme will increase the total capacity raised under the MCPP, the IFC's portfolio syndications platform, to more than $16 billion.

To date, MCPP has supported more than 260 IFC clients across 63 countries.

IFC is the largest global development institution focused on the private sector in emerging markets.

The organisation works in more than 100 countries, using its capital, expertise, and influence to create markets and opportunities in developing countries.

In fiscal year 2023, IFC said, it committed a record $43.7 billion to private companies and financial institutions in developing countries, leveraging the power of the private sector to end extreme poverty and boost shared prosperity as economies grapple with the impacts of global compounding crises.