Unlocking Insurance Company Capital for Community Investment


Washington, DC, April 1, 2024 – In collaboration with the Robert Wood Johnson Foundation, the Community Investment Center (a sponsored project at Rockefeller Philanthropy Advisors) solicits ideas and information from insurance and reinsurance companies, brokers, pools and other related industry entities that wish to invest in the fund or Structures that provide tangible social benefits to communities but face barriers to structuring viable transactions. The ideas received through this RFI can inform future guarantee programs aimed at overcoming those barriers, catalyzing investment, and informing policy change. Examples of barriers may include risk-based capital charges; regulation; liquidity; return.

About the Robert Wood Johnson Foundation

The Robert Wood Johnson Foundation (RWJF or Foundation) is the largest philanthropy focused exclusively on health equity, with the goal of providing all Americans the opportunity to live the healthiest lives possible. The Foundation is rated AAA by S&P and Moody's and uses grants, impact investing and advocacy to accelerate programmatic priorities that improve health.

CCI and RWJF have identified the insurance industry as a potential source of much-needed additional investment in community development, given that insurers are both owners of significant assets and providers of critical insurance products and services on the ground. RWJF's Impact Investing program provides grant funding and investment resources for initiatives to better understand what it will take to increase insurer investments in community development, including affordable housing, climate resilience, and health equity, with a special focus on disadvantaged communities. Have committed to both.

Objective

This Request for Information (RFI) is seeking examples of community investment opportunities that are under consideration by insurance companies but cannot be pursued due to one or more institutional barriers. Particular attention is given to opportunities where risk-based capital treatment of investments is the primary constraint. Other factors may include investment size, liquidity, risk and/or return profile, investment structure (for example, debt vs. equity) and others. Investment opportunities must be based in the United States and have a demonstrable positive impact on low-income communities, preferably disadvantaged communities of color. Examples of potential investments may include, but are not limited to, affordable housing, small business loans, community development financial institutions, community banks, and others.

Responders may be considered for a guarantee program offered by RWJF to mitigate one or more of these barriers, provided that the guarantee unlocks new insurance company capital for the subject investment and provides similar or comparable opportunities. It represents a credible path for sustained investment. Without additional guarantees. Additionally, these examples can be shared to promote ongoing industry efforts by RWJF and others to promote greater involvement by insurers to promote broader goals such as racial equity and climate resiliency.

entries

Subject to the acknowledgments and representations below, submissions must be specific to the investment opportunity being considered and, at a minimum, must include the following:

  • Description of the investment opportunity under consideration, including the sponsoring entity (e.g., borrower, fund manager, other intermediary, etc.).
  • Target capital increase and amount being considered by the insurer
  • High-level investment terms, including investment structure, tenure, target returns, etc.
  • An explanation of how the investment directly relates to and benefits low-income communities
  • An explanation of what institutional barriers (financial or otherwise) currently prevent the insurer from completing the investment and what would be required to remove those barriers

Please submit your views Not before the close of business on April 30, 2024. Submissions will be reviewed by CCI or its nominees on a rolling basis. Requests for clarification should be sent to Kevin Progar of the Center for Community Investment at kprogar@centerforcommunityinvestment.org.

Acknowledgments and representations

By responding to this RFI, you acknowledge that (1) information submitted may be shared with RWJF and others (2) your submission may not result in a transaction with RWJF or CCI and that you, RWJF or does not bind CCI to any commitment or contract; (3) you will not receive any compensation, monetary or otherwise, for the information presented in your proposal, whether or not the proposal leads to a grant or investment; (4) RWJF or CCI may use the information you submit in connection with the development of its programmatic work in a manner that will not directly or indirectly benefit you; and (5) you consent to being contacted for further discussions.

By submitting a Proposal, you represent that (1) you have the authority to submit the information; (2) nothing you submit is confidential or a trade secret or contains confidential information or trade secrets of another person; (3) your submission does not infringe the intellectual property or other rights of any person; and (4) the information you submit is true and not misleading.

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