Insurance and risk transfer

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.

In California, “uninsurable” means wildfire premiums jumping from $2,500 to $20,000 a year, or insurers refusing to renew policies altogether. In rural Mozambique, it means families having no financial safety net when a cyclone destroys their home.

US residential flood exposure poses a growing credit risk, given large insurance protection gap.

As of October 2025, 6,728 people in Magude have benefited from improved water access, including 2,561 women. Approximately 8,797 cattle have benefited from improved water access, and 1,045 households received food assistance during drought periods.