The insurance–MDB partnership reshaping emerging-market trade

This episode of our podcast series with the Asian Development Bank’s Trade and Supply Chain Finance Program (TSCFP) takes a closer look at insurance and reinsurance.

We shift the conversation toward risk and take a look at some of the partners helping banks reach markets that were once beyond their limits. To help us better understand this often complex world, we spoke with Irene Port, Client Relationship and Risk Manager at Munich Re.

Port said, “Historically, banks shared these risks among themselves. Insurers and reinsurers were present, but to a smaller extent, because the product wasn’t well understood. Over time, insurers and reinsurers went through their own learning process. In emerging markets, especially, banks reached their limit thresholds. The demand exceeded what banks alone could support. So insurers and reinsurers became essential partners.”

By absorbing risk beyond the banking system, insurers and reinsurers are helping mobilise new pools of capital for trade. Partnerships with development banks, such as ADB’s TSCFP, have been a big part of facilitating this shift. Port explained, “It’s extremely valuable for us to work with MDBs. Through ADB, we access countries like Armenia or Cambodia, where we wouldn’t have much familiarity. ADB knows the markets, banks, regulators, and legal environments. That gives us significant comfort and confidence in participating.”

Within Munich Re, Port’s unit acts as a primary insurer—directly partnering with multilateral banks and financial institutions—while other divisions provide reinsurance to other insurers. “Our unit works directly with MDBs and financial institutions,” she said. “When I first joined, I assumed I’d be doing pure reinsurance, but in our area we’re positioned as the primary insurer.”

Looking ahead, Port sees the market continuing to evolve as new investors enter the trade finance space. “We’re seeing asset managers, fintech platforms, and other institutional investors who view trade-finance instruments as short-term, low-correlation assets. Because letter-of-credit transactions are short-tenor and require large volumes, portfolio solutions have become essential,” she noted.

That diversification has also encouraged greater sophistication in structure, tenor, and investor participation, but it comes with increased pricing pressure and a gradual move beyond top-tier corporates to second- and third-tier suppliers in emerging markets.

Through its collaboration with ADB, Munich Re is helping channel capacity into projects that support both financial resilience and sustainable trade. “Participating in programs like ADB’s helps us channel capacity into projects that are both financially sound and aligned with sustainability objectives—including climate mitigation and inclusive trade. So it translates ESG commitments into concrete, measurable actions.”

Port sees the insurer–MDB partnership as a model for scaling inclusive finance in high-risk markets. “I see it as a true partnership. MDBs bring local market knowledge, policy alignment, and development credibility. We bring global risk-management expertise and capital. Together, we can respond to market developments, monitor activity across countries, and support the needs of banks and corporations.”

As trade finance evolves, Munich Re’s role, alongside MDBs like ADB, is an indicator of how insurance and reinsurance can extend far beyond risk transfer and help enable private capital to flow into places it has rarely gone before.