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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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A Senegalese woman harvests crop from her farm
Update

The InsuResilience Solutions Fund (ISF) supported the introduction of the first agricultural insurance products in Togo by co-funding the development and implementation of five index-based insurance products designed to cover drought and excess rainfall

InsuResilience Solutions Fund
Gender analysis of climate and disaster risk finance and insurance in Costa Rica thumbnail
Documents and publications

Through in-depth desk research and key informant interviews, this paper synthesises the Climate Disaster Risk Finance and Insurance landscape in Costa Rica, focusing on identifying relevant gaps in integrating gender and, in part, social inclusion.

The Global Shield against Climate Risks
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Insurance plays a vital role in enabling DRR both directly and indirectly. It shapes behaviors through underwriting, pricing, and risk advisory, while also supporting longer-term investments in resilience.

Global Shield Financing Facility
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After each major disaster event comes a rise in insurance costs and a withdrawal of insurance coverage. To avoid being a canary in the coalmine, Australia urgently needs government intervention in the insurance industry.

Conversation Media Group, the
An apartment complex in construction, in Kent, UK
Update

There is need for risk-informed development to minimize such loss and damage. This means including disaster risk reduction and climate adaptation solutions in our development policies and investments

United Nations Development Programme (UNDP)
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Explore 4 essential ways premium support can boost climate resilience for vulnerable communities facing growing climate risks.

United Nations University - Institute for Environment and Human Security (UNU-EHS)
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Relying on uncertain, slow post-disaster assistance is a risky gamble, much like the suboptimal outcome in the 'Prisoner's Dilemma'. Effective protection requires foresight and cooperation.

Financial Protection Forum (World Bank)
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People who’ve lived through natural disasters, such as floods or cyclones, often re-assess their priorities. But for Australians who’ve lived through a severe cyclone, this can affect them in a way that’s received little attention.

Conversation Media Group, the
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