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ADB expands insurer-backed credit program with up to $2.5 billion
The five-year agreement signed in Tokyo on July 31, 2026, uses credit insurance to cover part of losses if borrowers’ financial institutions fail to repay ADB loans.
The Asian Development Bank has partnered with major global insurers to expand an insurer-backed credit program across Asia and the Pacific, providing up to USD 2.5 billion in lending capacity to support small businesses, affordable housing, and other underserved borrowers, according to Reinsurance News.
The participating insurers include 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, with Sompo Japan Insurance, Mitsui Sumitomo Insurance, HDI Global, and SCOR Business Solutions joining as first-time participants.
The arrangement is a five-year agreement that builds on a credit insurance programme launched in 2022 and increases ADB’s ability to provide longer-term financing through banks and other financial institutions to borrowers that struggle to obtain credit. The insurers will not make the loans themselves, but will cover part of the loss if a financial institution fails to repay an ADB loan, helping ADB transfer some risk and free capital for additional lending.
The expanded programme was signed at a ceremony in Tokyo on July 31, 2026, attended by Masato Kanda, President of ADB, and representatives of Tokio Marine, Sompo Japan Insurance, and Mitsui Sumitomo Insurance. ADB said the added lending capacity will be used to provide more financing to commercial banks and other financial institutions, which can then extend more credit to micro, small, and medium-sized enterprises.