Insurance and risk transfer

As climate change risks increase, insurance premiums are rising, making coverage unaffordable for many, especially those in high-risk areas.

While the global natural catastrophe insurance protection gap is estimated to have risen to US $424 billion in 2025, new research from Swiss Re suggests that insurance coverage is growing broadly in line with the increasing catastrophe exposure.

The Guatemalan Red Cross has activated its early action protocol (EAP) for drought. It is now implementing pre-agreed actions to support those at risk from this hazard, which is linked to the emerging El Niño event.

When drought indicators in Lao PDR cross a defined level, money moves. That is the core logic behind a new anticipatory drought insurance pilot launched May 29, 2026.

This policy note explores how Integrated National Financing Frameworks (INFFs) can support more resilient financing by embedding climate risk diagnostics and climate disaster risk finance and insurance (CDRFI) mechanisms into national financing strategies

While federal flood insurance subsidizes risky coastal and waterfront development for wealthier homeowners by lowering the cost of living in these areas, many low-income households in flood-prone areas remain stuck with risky properties and little help.

This policy note builds on the practical and operational experience of the World Bank Group and World Food Programme to offer an overview of why and how strengthening the linkages between disaster risk finance (DRF) and adaptive social protection matters.

This report presents an independent evaluation of its In-Country Process - the multi-step pathway through which countries identify their priorities and request support - drawing on case studies from Pakistan, Costa Rica and The Gambia.