3givrapd_policy_brief_micro-insurance_as_climate_change_adaptation_strategies-d4272860fe6eacff.pdf

This policy brief examines the potential of micro-insurance as a climate change adaptation strategy for Small Island Developing States (SIDS), specifically focusing on the Caribbean and South West Indian Ocean (SWIO) regions. It identifies gaps in current coping mechanisms, assesses community demand and vulnerability, and proposes policy options for implementing tailored insurance products to protect low-income coastal communities from weather-related risks.

• Coastal communities in SIDS face significant economic losses from climate change and weather risks, particularly in the tourism, fisheries, and agriculture sectors. Existing insurance for natural disasters and coastal flooding is largely non-existent or perceived as inaccessible and contrary to intended goals by local populations.
• Current coping mechanisms, such as household savings and informal credits, are insufficient for short-term needs and unsustainable long-term, often creating a cycle of dependence. While some communities use social networks for low-stress events, medium to high stress levels—such as frequent weather episodes—require external assistance like government aid or remittances to avoid isolation.
• Research in the Caribbean and SWIO regions indicates high livelihood vulnerability, with approximately one-third of the sampled population living in or vulnerable to poverty. Over one-third of respondents experienced an extreme climatic event in the previous five years, often relying on selling possessions or borrowing to cope.
• Barriers to the adoption of micro-insurance include mistrust, concerns over costs, poor understanding of eligibility and repayment, and dissatisfaction with payout wait times. Respondents indicated that payouts are most effective if received within two weeks of an emergency.
• To implement micro-insurance as a long-term adaptation strategy, the brief recommends state subsidies for low-income families, linking premiums to mitigation types, and establishing public-private partnerships with commercial banks and credit unions to reach farmer and fisher associations.

APA

Climate and Development Knowledge Network (n.d.). 3givrapd_policy_brief_micro-insurance_as_climate_change_adaptation_strategies-d4272860fe6eacff.pdf. http://cdkn.org/wp-content/uploads/2017/02/3GIVRAPD_Policy_Brief_Micro-insurance_as_Climate_Change_Adaptation_Strategies.pdf

Chicago

Climate and Development Knowledge Network. 3givrapd_policy_brief_micro-insurance_as_climate_change_adaptation_strategies-d4272860fe6eacff.pdf. n.d. http://cdkn.org/wp-content/uploads/2017/02/3GIVRAPD_Policy_Brief_Micro-insurance_as_Climate_Change_Adaptation_Strategies.pdf.

Wikipedia

{{cite report |author=Climate and Development Knowledge Network |title=3givrapd_policy_brief_micro-insurance_as_climate_change_adaptation_strategies-d4272860fe6eacff.pdf |url=http://cdkn.org/wp-content/uploads/2017/02/3GIVRAPD_Policy_Brief_Micro-insurance_as_Climate_Change_Adaptation_Strategies.pdf |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{climateanddevelopmentknowledgenetworknd3givrapdpolicybriefmicroinsuranceasclimatechangeadaptationstrategiesd4272860fe6eacffpdf, author = {{Climate and Development Knowledge Network}}, title = {{3givrapd\_policy\_brief\_micro-insurance\_as\_climate\_change\_adaptation\_strategies-d4272860fe6eacff.pdf}}, institution = {Climate and Development Knowledge Network}, url = {http://cdkn.org/wp-content/uploads/2017/02/3GIVRAPD_Policy_Brief_Micro-insurance_as_Climate_Change_Adaptation_Strategies.pdf}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }