Index insurance for climate risk management and poverty reduction: Topics for debate

Index-based financial risk-transfer mechanisms can reduce conditions of chronic vulnerability and underdevelopment by both enabling investment and reducing the impact of shocks on rural livelihoods. This paper examines the use of index insurance to help reduce vulnerability and poverty and adapt to climate change.

This paper is a policy distillation adapted from IRI Technical Report 07-03: Working paper - Poverty traps and climate risk: limitations and opportunities of index-based risk financing.

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