Opportunities for Strengthening Resilience by Integrating Climate and Disaster Risk Finance and Insurance (CDRFI) in National Adaptation Plan (NAP) Processes

The report analyzes the integration of climate and disaster risk finance and insurance (CDRFI) within National Adaptation Plan (NAP) processes, finding that while insurance is widely mentioned—particularly for agriculture—there are significant opportunities to better utilize risk analytics, adaptive social protection, and diverse financial instruments to enhance climate resilience in developing countries.

• The financial cost of climate-related disasters is a primary driver for adaptation planning, though most references in NAP documents and Green Climate Fund (GCF) Readiness Proposals are retrospective. For example, Saint Lucia's NAP cites USD 336 million in damages from Hurricane Tomas in 2010, while Timor-Leste provides a prospective estimate that damages from windstorms, landslides, and floods could reach 10% of GDP by 2100.
• There is a strong linkage between adaptation and disaster risk management (DRM) in national planning. Over 80% of reviewed NAP documents identify specific actions related to DRM, and just over 70% list DRM or disaster risk reduction (DRR) as a priority sector or strategy.
• Insurance is the most frequently cited CDRFI solution, appearing in 90% of NAP documents, with 81% including it as an adaptation priority or action. It is most commonly applied to the agriculture, livestock, and fisheries sectors; 58% of the 19 countries that included insurance in their plans focused on these specific sectors.
• The insurance sector is increasingly recognized as a strategic partner for implementing NAPs, with 38% of NAPs mentioning the sector as a partner. Examples include Cameroon, where insurance companies promote resilient infrastructure, and Saint Lucia, where the National Insurance Council is a member of the National Climate Change Committee.
• Adaptive social protection is identified as a resilience tool in 33% of analyzed NAPs, particularly for vulnerable groups. Countries such as Kenya, Burkina Faso, and Grenada have included social protection mechanisms to increase livelihood security for farming and fishing communities or marginalized groups.
• Improving data generation and analysis is a high priority, with 76% of NAP documents referencing these needs. The report notes a gap in the systematic use of risk modelling and probabilistic analysis to identify adaptation priorities, suggesting that collaboration with insurance providers could fill this data gap.

APA

A., D., T., F., & C., L. (2021). Opportunities for Strengthening Resilience by Integrating Climate and Disaster Risk Finance and Insurance (CDRFI) in National Adaptation Plan (NAP) Processes. NAP Global Network. https://napglobalnetwork.org/wp-content/uploads/2021/08/napgn-igp-en-2021-integrating-cdfri-in-national-adaptation-plan-processes.pdf

Chicago

A., Dazé,, Farrow, T., and Ledwell, C. Opportunities for Strengthening Resilience by Integrating Climate and Disaster Risk Finance and Insurance (CDRFI) in National Adaptation Plan (NAP) Processes. NAP Global Network, 2021. https://napglobalnetwork.org/wp-content/uploads/2021/08/napgn-igp-en-2021-integrating-cdfri-in-national-adaptation-plan-processes.pdf.

Wikipedia

{{cite report |last1=A. |first1=Dazé, |last2=T. |first2=Farrow, |last3=C. |first3=Ledwell, |title=Opportunities for Strengthening Resilience by Integrating Climate and Disaster Risk Finance and Insurance (CDRFI) in National Adaptation Plan (NAP) Processes |publisher=NAP Global Network |date=2021 |url=https://napglobalnetwork.org/wp-content/uploads/2021/08/napgn-igp-en-2021-integrating-cdfri-in-national-adaptation-plan-processes.pdf |access-date=23 October 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{a2021opportunities, author = {A., Dazé, and T., Farrow, and C., Ledwell,}, title = {{Opportunities for Strengthening Resilience by Integrating Climate and Disaster Risk Finance and Insurance (CDRFI) in National Adaptation Plan (NAP) Processes}}, institution = {NAP Global Network}, year = {2021}, url = {https://napglobalnetwork.org/wp-content/uploads/2021/08/napgn-igp-en-2021-integrating-cdfri-in-national-adaptation-plan-processes.pdf}, urldate = {2026-10-23}, note = {Indexed by Climate Insights Directory} }