‘SAVING FOR A RAINY DAY’: MICRO-INSURANCE AS CLIMATE CHANGE ADAPTATION STRATEGIES FOR SIDS

The document examines the vulnerability of coastal sectors in SIDS to climate change and the inadequacy of current coping mechanisms. It proposes micro-insurance as a tool to protect low-income populations from specific perils, identifying barriers such as mistrust and cost, while suggesting policy options like state subsidies and public-private partnerships to implement these schemes.

• Coastal sectors in SIDS, particularly tourism, fisheries, and agriculture, face significant financial risks from climate change, with existing insurance for natural disasters and coastal flooding being largely non-existent or inaccessible to locals.
• 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 because they only cover a small part of losses.
• Research in the Caribbean and SWIO regions indicates high livelihood vulnerability, with approximately one-third of the sampled population living in poverty or being vulnerable to poverty.
• Barriers to the adoption of micro-insurance include a lack of trust in insurance companies, concerns over high costs, and a poor understanding of eligibility and repayment terms. Additionally, those with insurance expressed dissatisfaction with payout wait times, noting that payouts are most effective if received within two weeks of an emergency.
• To implement micro-insurance as a viable adaptation strategy, the document recommends state subsidies for low-income families, linking premiums to mitigation types, and establishing public-private partnerships with commercial banks and credit unions.

APA

Climate and Development Knowledge Network (2015). ‘SAVING FOR A RAINY DAY’: MICRO-INSURANCE AS CLIMATE CHANGE ADAPTATION STRATEGIES FOR SIDS. 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. ‘SAVING FOR A RAINY DAY’: MICRO-INSURANCE AS CLIMATE CHANGE ADAPTATION STRATEGIES FOR SIDS. 2015. 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=‘SAVING FOR A RAINY DAY’: MICRO-INSURANCE AS CLIMATE CHANGE ADAPTATION STRATEGIES FOR SIDS |date=July 2015 |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{climateanddevelopmentknowledgenetwork2015saving, 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 = {2015}, month = jul, 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} }