Paying the Premium

The document argues that well-designed disaster risk management strategies, including insurance, are essential adaptation investments to protect developing countries from the increasing economic damages of climate-related disasters. Insurance is presented as a tool to transfer risk, provide immediate liquidity, and build resilience by allowing markets to share the costs of adaptation.

• Climate change is expected to increase the frequency and intensity of weather-related hazards like droughts and storms, which will likely increase economic damages, particularly in developing countries that lack the capacity to cope.
• Effective disaster risk management strategies are critical adaptation investments that include structural interventions, early warning systems, local responses, and insurance.
• Insurance can enhance resilience for the poor and vulnerable by transferring the risk of future losses to providers, ensuring immediate financial liquidity after a disaster, and utilizing markets to cover some adaptation costs.

APA

World Resources Institute (n.d.). Paying the Premium. https://www.wri.org/research/paying-premium

Chicago

World Resources Institute. Paying the Premium. n.d. https://www.wri.org/research/paying-premium.

Wikipedia

{{cite report |author=World Resources Institute |title=Paying the Premium |url=https://www.wri.org/research/paying-premium |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{worldresourcesinstitutendpaying, author = {{World Resources Institute}}, title = {{Paying the Premium}}, institution = {World Resources Institute}, url = {https://www.wri.org/research/paying-premium}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }