Insurance is widely seen as an additional tool for countries to bolster their financial resilience, particularly against increasing risk due to climate change. However, the most vulnerable countries are also often the poorest economically. As such, many don’t take out insurance as the upfront costs often outweigh the benefits.
One way of overcoming this is through insurance premium subsidies. Instead of providing finance to help rebuild after an event (ex-post), donors increasingly see subsidising insurance premiums...