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Insurance and risk transfer

The process of formally or informally shifting the financial consequences of particular risks from one party to another, whereby a household, community, enterprise or State authority will obtain resources from the other party after a disaster occurs, in exchange for ongoing or compensatory social or financial benefits provided to that other party. Risk insurance is a key disaster risk management activity.

This theme covers aspects of disaster risk financing, catastrophe bonds, financial resilience, and micro-insurance.

Latest Insurance & risk transfer additions in the Knowledge Base

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Alianzas público-privadas: inversión estratégica para una resiliencia integral
Update

A WRI analysis found that adaptation and resilience investments can unlock broad economic, social and environmental benefits that go far beyond simply avoiding losses, even when an extreme event doesn’t occur.

World Resources Institute
Arm of a man in a business suit holding an umbrella
Update

At Swiss Re Public Sector Solutions, we believe the timing is right to invest more boldly in the concept of Insurance Linked Loans (ILL), a risk-transfer innovation that can benefit all parties aiming to strengthen sovereign disaster resilience.

Swiss Reinsurance Company (Swiss Re)
Man building
Update

For the world’s poorest people, climate change does not announce itself in parts per million. It arrives as a ruined harvest, a flooded shopfront, or lost learning as children are kept out of school.

Brookings Institution, the
Building a DRR financing strategy in Armenia cover
Documents and publications

This report assesses Armenia’s existing DRR financing mechanisms and challenges, recommends structural reforms, and applies a structured methodology to identify and prioritize DRR investment needs.

United Nations Office for Disaster Risk Reduction - Regional Office for Europe & Central Asia
Increasing insurability to close protection gaps thumbnail
Documents and publications

The paper aims to aid understanding of barriers to insurability and what it takes to make a risk insurable. It calls for urgent, coordinated action across governments, regulators, insurers and partners to increase insurability and resilience-building.

Insurance Development Forum
Wildfires have created instability within risk transfer markets. Here’s a path forward thumbnail
Documents and publications

This study finds that most risk models and data are for wildfires, but Wildland-Urban (WU) fires are different because vulnerabilities propagate and compound losses.

Proceedings of the National Academy of Sciences of the United States of America (PNAS)
A river wall is being reinforced in Guaranda, Colombia.
Update

Over two decades, Colombia has steadily strengthened its disaster risk management (DRM) system—linking policy reform, institutional capacity, and financial preparedness to better manage shocks.

World Bank, the
Arial view of rainforest jungle in Brasil
Update

How WFP works across borders to protect improve food security of communities in the region known as ‘the lungs of the earth’.

World Food Programme (WFP)
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