The Involvement of Insurance Companies in Climate Finance: Tackling a Global Challenge by Investing in Local Solutions

Persuaded by scientific evidences of the dangerous impacts of climate change, private low-carbon investments in climate change mitigation and adaptation are intensifying. Following this trend, insurance companies – directly and through public-private partnerships with International Financial Institutions – are getting involved in building climate and disaster-resilient schemes for vulnerable communities in developed and developing countries. Risk-pooling, risk-transfer, risk-reduction and micro-insurance are some of the mechanisms already in operation that could be further developed to strengthen the capacities to adapt to climate change and to extreme weather events