'Saving for a rainy day': Micro-insurance as climate change adaptation strategies for SIDS

This policy brief examines the role of micro-insurance as a climate change adaptation strategy for Small Island Developing States (SIDS), specifically targeting low-income coastal communities in sectors like tourism, fisheries, and agriculture where traditional insurance is often non-existent or inaccessible.

• Climate change and weather-related risks cause economic losses in the millions of dollars for SIDS, particularly affecting coastal communities in the agriculture, fisheries, and tourism sectors. Existing coping mechanisms, such as informal credits and household savings, are insufficient for short-term needs and unsustainable long-term, often creating a cycle of dependence.
• Micro-insurance is identified as a financial tool to protect low-income individuals against specific perils through regular premium payments and risk-sharing pools. To effectively pilot and scale these models as adaptation strategies, there is a need for robust monitoring, hybrid governance, client education, and superior product design.
• The GIVRAPD project aims to identify community demand and willingness to purchase tailored insurance programs and to engage stakeholders on the feasibility and implementation of micro-insurance within SIDS contexts.

APA

Climate and Development Knowledge Network (2017). 'Saving for a rainy day': Micro-insurance as climate change adaptation strategies for SIDS. https://cdkn.org/resource/policy-brief-saving-rainy-day-micro-insurance-climate-change-adaptation-strategies-sids

Chicago

Climate and Development Knowledge Network. 'Saving for a rainy day': Micro-insurance as climate change adaptation strategies for SIDS. 2017. https://cdkn.org/resource/policy-brief-saving-rainy-day-micro-insurance-climate-change-adaptation-strategies-sids.

Wikipedia

{{cite report |author=Climate and Development Knowledge Network |title='Saving for a rainy day': Micro-insurance as climate change adaptation strategies for SIDS |date=2 February 2017 |url=https://cdkn.org/resource/policy-brief-saving-rainy-day-micro-insurance-climate-change-adaptation-strategies-sids |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{climateanddevelopmentknowledgenetwork2017saving, author = {{Climate and Development Knowledge Network}}, title = {{'Saving for a rainy day': Micro-insurance as climate change adaptation strategies for SIDS}}, institution = {Climate and Development Knowledge Network}, year = {2017}, month = feb, url = {https://cdkn.org/resource/policy-brief-saving-rainy-day-micro-insurance-climate-change-adaptation-strategies-sids}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }