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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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Documents and publications

The report sets out a four-pillar framework: financing, institutional arrangements and partnerships, programmes and delivery systems, and data and information, for making finance and delivery operate as one system.

United Nations Development Programme (UNDP)
Update

After years underestimating the risks posed by climate-fueled disasters, the U.S. home insurance industry is in turmoil. In vulnerable areas, rising insurance costs are upending housing markets and communities.

Yale Environment 360
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Documents and publications

This report provides an overview of financial protection gaps that can leave individuals under-protected and put their financial well-being at risk in selected Asian countries.

Organisation for Economic Co-operation and Development
Bridge destroyed by Calgary flood in 2013, Canada
Update

As climate volatility escalates, insurers face a critical inflection point. Responses like hiking premiums and cutting coverage are no longer enough, a new resilience strategy is emerging to drive growth, restore trust and strengthen client partnerships.

Aon PLC
Hand stopping wooden blocks from falling on a house
Update

Just 10 days after the Kamchatka tsunami hit its shores, the island nation of Samoa received a payout from the Pacific Catastrophe Risk Insurance Company (PCRIC), a regional development insurer.

Temblor
Case study
Location: Kiribati
The Republic of Kiribati is facing rising seas and intensifying drought cycles. In 2023, it launched a community-based parametric insurance scheme in partnership with UNCDF and UNDP, offering pre-agreed payouts.
  • Kiribati - government
Update

Extreme weather disasters — made larger, longer, and more intense by climate change — are taking an heavier toll on the possession that many Americans consider to be their most important asset: the home.

Grist Magazine
Update

Understanding climate risk in the housing market is essential, as these challenges not only affect residential safety but also influence property values, insurance costs, and overall market stability.

Move.org
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