ADB expands lending capacity with insurers to boost development finance

Under the arrangement, participating insurers will cover part of the potential losses if a financial institution is unable to repay an ADB loan.

The Asian Development Bank (ADB) has signed a new agreement with some of the world's largest insurance companies that will unlock up to US$2.5 billion in additional lending for small businesses, affordable housing and other underserved borrowers across Asia and the Pacific. The five-year partnership expands ADB's Master Framework Program for Financial Institutions, helping the Bank increase financing without requiring additional capital while directing more resources to communities that face limited access to credit.

ADB President Masato Kanda said the agreement will allow the Bank to channel more funding to areas where it is needed most, including micro, small and medium-sized enterprises (MSMEs), lower-income households and underserved communities. The additional lending capacity will be provided through commercial banks and other financial institutions, enabling them to extend more loans to small businesses, including women-owned enterprises, as well as families seeking affordable housing and other essential financing.

Sharing risk to unlock capital

The expanded programme builds on a credit insurance initiative launched in 2022.

Under the arrangement, participating insurers will cover part of the potential losses if a financial institution is unable to repay an ADB loan. The insurers do not provide the loans directly. Instead, their coverage allows ADB to transfer part of the lending risk, free up capital for new financing and better manage its exposure across different markets.

By sharing risk with private insurers, ADB can increase its development lending while making more efficient use of its existing capital.

Global insurers join programme

The agreement was signed in Tokyo on 31 July 2026 and brings together a group of leading international insurers.

Participating companies 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 Co. Ltd. and Tokio Marine HCC.

Four companies—Sompo Japan Insurance, Mitsui Sumitomo Insurance, HDI Global and SCOR Business Solutions—joined the programme for the first time.

ADB said the expanded partnership will strengthen its ability to mobilise private sector support for development while improving access to finance for businesses and households across the region.