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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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Update

With a 60% increase in recent decades, the Northeast has experienced the largest regional increase of extreme precipitation in the U.S., according to a government report published in November 2023.

Moody's
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Documents and publications

This study serves as a starting point for the systematic quantification and minimization of basis risk in tsunami parametric insurance, by evaluating risk indicators of both negative and positive basis risk.

npj Natural Hazards (Nature)
Landscape of a aerial view of a pathway in the wood.
Update

Key milestone achieved in the Tripartite Programme’s sub-sovereign risk transfer project, advancing climate resilience for vulnerable communities and building future-ready nations.

Insurance Development Forum
Hand stopping wooden blocks from falling on a house
Update

Traditionally designed to cover post-disaster losses, insurance – when structured around forecast-based triggers – has the potential to release rapid, pre-arranged funding based on early warning systems.

Anticipation Hub
Case study
Location: India
This case study presents a project whose main objective was to enhance the robustness and reliability of the disbursements of emergency relief and compensation for damages incurred by the Nagaland population in India.
  • InsuResilience Solutions Fund
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Documents and publications

This brief explains how Practical Action is working with smallholder farmers in the Lower Karnali River Basin, Nepal, to strengthen their resilience to recurring monsoon floods using flood early warning systems (EWS) and livelihoods diversification.

Practical Action
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Documents and publications

This report aims to measure the impact of innovative parametric insurance on a pilot project in Nepal

Practical Action
Flash flood mud from runoff after a forest fire
Update

Hurricane Helene lasted only a few days in September 2024, but it altered the landscape of the Southeastern U.S. in profound ways that will affect the hazards local residents face far into the future.

Conversation Media Group, the
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