Facing risk: options and challenges in ensuring that climate/disaster risk finance and insurance deliver for poor people

This report assess the value of insurance as an approach to reducing climate and disaster risk among poor and vulnerable people and identifies key options and challenges. It assesses the InsuResilience Global Partnership and recommends that the Partnership build more evidence of what works for poor people, invest in pro-poor business models, and ensure the insurance schemes developed are part of a broader approach to reduce risks and the inequalities that make people vulnerable to disasters. Climate and disaster risk financing could play a useful role if it is part of an approach that includes risk reduction, if it strengthens social protection, and if it has real participation from civil society. Insurance, as one component of risk financing, could play a supportive role if carefully designed – keeping in mind the limitations, including the risk of worsening income and gender inequality.