This document provides an overview of financial instruments, such as insurance, that can be used to strengthen resilience and speed-up recovery from disasters. This is a result of work done by the DFID Centre for Global Disaster Protection, in partnership with Lloyd’s of London, to convene experts from across the financial services, development, humanitarian and engineering communities to catalyse new thinking on how innovative financial instruments can build resilience.
The Innovation Lab brought together experts from the public and private sector, in an open format, to generate and incubate new solutions to meet identified problems. The first Lab of the Centre was held in January 2018 to investigate financial products and structures that incentivize risk reduction and resilient rebuilding by bringing together elements of project financing and risk transfer.
Four broad ideas emerged from the Innovation Lab. These range from ideas that have already been developed but which can be re-purposed for these challenges which could be brought to market relatively quickly, through to ideas that, although further from current practice, hold significant potential. These ideas will be developed further in the coming months and a full report will follow in the summer of 2018.