UIIF has three major components:

COMPONENT 1: Insurance product development and premium subsidy
By 2025, 10 insurance policies against natural hazards have been newly developed or restructured that provide rapid financial resources to cities after damaging events to rebuild critical infrastructure and help the poor vulnerable population cope with the negative impacts.

COMPONENT 2: Regional Risk Pool
Insurance policies are pooled in a newly established risk pool (Output B) to achieve lower premiums for cities via diversification benefits.

A suitable pooling solution for the portfolio of different insurance policies of participating cities will be developed, where risks are pooled, meaning that the risk pool will take over a pre-determined share of the risk of the primary insurers, and an overall reinsurance coverage is structured on the global reinsurance market for the cumulative portfolio.

COMPONENT 3: Accompanying advice
Cities will be strengthened in their natural hazard management capabilities via targeted technical advice (Output C) to minimize risks and use insurance payouts in a sustainable manner.