Linking climate risk insurance with shock-responsive social protection
Climate change is already affecting the most vulnerable around the world – by 2030 it could result in an additional 100 million people living in extreme poverty (Hallegatte et al., 2016). 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. Linking insurance with social protection systems could enhance households’ and communities’ ability to absorb climate shocks, and improve their ability to reduce and manage risk, and reduce poverty. However, while climate risk insurance and social protection are increasingly recognized as tools to help vulnerable communities and households to cope with climate shocks, the scope for enhancing climate resilience by linking these instruments has not been explored at length. Drawing from emerging experiences, this policy brief examines the opportunities and challenges that arise.
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Livelihoods, Social Protection