This key sheet is part of a series aimed at DFID staff and development partners examining the impact of climate change on poverty, and exploring tools for adaptation to climate change.
It focuses on insurance as a means of spreading risk and supporting risk reduction and disaster management. It aims to guide the reader through the key issues of:
• How insurance works;
• Challenges faced by insurance in developing countries; and
• New approaches to insurance in developing countries.
Lastly, this sheet advises on the way forward to make more use of insurance as a tool for adaptation to climate change.