Financial Innovations for Social & Climate Resilience
Market-based risk financing mechanisms such as index insurance, etc., have the potential to play an important role in reducing vulnerability and building resilience to climate change impacts. A number of important initiatives have demonstrated great potential, but also a number of challenges before they can provide an inclusive, sustainable mechanism that can be applied at a large scale and contribute to climate change adaptation and poverty reduction.
The World Bank is working with partners to establish an evidence base of experience to date with market-based risk financing instruments that aim to target poor households. Through this initiative, we will be exploring questions regarding: access of the poor to insurance coverage; the potential of insurance programs to scale up and remain sustainable; their potential to transform people's livelihoods and strengthen resilience; and, how they compare to other risk management options in terms of value for money. We aim to inform the global debate and country-level decision making on disaster risk and climate change adaptation financing for the poor.
