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The paper identifies parametric insurance as a critical tool for strengthening the financial resilience of cities in EMDEs, where less than 10% of climate-related losses are currently insured. It highlights a structural collaboration gap between municipalities and insurers, noting that only 5 of 16 mapped programs engage directly with municipal governments. To address this, the authors propose three priority actions: supporting affordable premiums through national and international funding, strengthening municipal capacity for risk-layering, and improving legal and regulatory enabling environments. The document argues that parametric insurance is a particularly effective entry point due to its ability to provide rapid liquidity and simpler product structures compared to traditional indemnity insurance.