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

This article presents estimated economic impacts of L.A. wildfires in January 2025.

University of California, Los Angeles
Flood - Queensland, Australia, 2011
Update

Climate change is an economic, affordability, and cost-of-living issue. These implications were made clear in recent Consumer Price Index (CPI) data released by the Australian Bureau of Statistics (ABS). Housing, in particular, is a growing concern.

Monash University
Suva, Fiji, street
Update

The Pacific Insurance and Climate Adaptation Programme (PICAP) is pioneering innovative and locally-led climate risk insurance solutions, including parametric insurance, tailored to the unique challenges of Pacific Island countries.

United Nations Development Programme (UNDP)
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Documents and publications

This report provides a comprehensive assessment of, among other things, Somalia's climate and disaster risk profile, the economic and financial impact of past disasters, the status of disaster risk finance (DRF) instruments.

World Bank, the
Update

Climate change is undermining the insurance systems American homeowners rely on to protect themselves from catastrophes. This breakdown is starting to become painfully clear as families and communities struggle to rebuild.

Conversation Media Group, the
Update

Among the many climate risks reshaping the world, extreme heat may pose the most profound threat to human health, infrastructure, and economic stability. The insurance industry will play a critical role in managing this escalating risk landscape.

World Economic Forum
Update

After insurers like State Farm dropped policies, to switch to the state’s Fair plan was prohibitively pricey for many.

Guardian, the (UK)
Update

Catastrophic fires in Los Angeles should ring alarm bells in Australia, where global ripple effects and grim prospects of similar disasters are likely to force up insurance premiums.

Conversation Media Group, the
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