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

As communities in Small Island Developing States experience these challenges firsthand, climate risk insurance is emerging as a potential tool to help families and local businesses recover more quickly and build resilience.

SIJ Media
Cover
Documents and publications

This issue highlights how India is deploying parametric insurance to protect vulnerable communities from extreme heat. With rising climate risks, it stresses urgent innovation in risk transfer mechanisms, especially for women and informal sector workers.

All India Disaster Mitigation Institute
Picture of the river at Fazao-Malfakassa National Park in Togo
Update

The municipalities of Kloto 1, Golfe 1, and Golfe 7 in Togo have officially signed an innovative insurance policy aimed at strengthening their resilience against flooding.

InsuResilience Solutions Fund
This image shows a class 5 Super Taifun approaching the Asian Pacific coast. The image shows the eye of the hurricane viewed from space.
Update

Mutual insurer MAIF (Mutuelle assurance des Instituteurs de France) is strengthening its climate risk modeling capabilities with access to a comprehensive suite of Moody's high-definition risk models.

Moody's Investors Service
Students matching on a street
Update

Much of the world lacks earthquake insurance, but when a magnitude 7.3 earthquake struck Vanuatu, the Pacific island nation was protected.

Temblor
Woman carries a bowl of bananas on her head in Puerto Plata, Dominican Republic
Update

To enhance the Dominican Republic’s resilience to climate-related events, the InsuResilience Solutions Fund (ISF) is supporting a partnership between the country’s social protection program Supérate, along with an international consortium.

InsuResilience Solutions Fund
Update

This column examines how escalating disaster costs, market failures, and the need for better prevention urge to redefine societies' risk management mechanisms in an increasingly uncertain climate landscape.

VOXEU/ CEPR
Vegetable market, India
Update

For women farmers in rural India, the effects of climate change are compounded by limited access to finance, smaller plots and fewer land rights. Parametric insurance products can offer better protection.

World Economic Forum
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