How can linking climate risk insurance with shock-responsive social protection contribute to climate resilience?

The policy brief “How can linking climate risk insurance with shock-responsive social protection contribute to climate resilience?”[1] was jointly prepared, drawing from the joint activities on this theme.  It elaborates on how the poor and vulnerable are often least able to prevent, cope with and adapt to climate impacts and stand to lose more overall in extreme weather events. Therefore, linking insurance with social protection systems could enhance households and communities’ ability to absorb climate shocks, and also to improve their capacity to reduce and manage risk. It would also reduce poverty, by enabling the poorest and most vulnerable to access economic instruments for risk smoothing, but also by creating entry points for economic inclusion of these groups. It can also serve as a contingency financing mechanism for governments to temporarily scale up shock-responsive social protection in anticipation or response to a shock. The policy brief advocates for well-designed climate risk insurance schemes that can help people, businesses and countries manage the impacts of climate related shocks in different ways.

[1] Vaananen, Elina, Katharina Nett, Cecilia Costella, and Janot Mendler de Suarez. How Can Linking Climate Risk Insurance with Shock-Responsive Social Protection Contribute to Climate Resilience?. Policy Brief. InsuResilience Global Partnership, 2019. https://www.insuresilience.org/wp-content/uploads/2019/03/insuresilience_policybrief_1-2019_190312_web.pdf.