Risk insurance can be a feasible tool to adapt to climate risks and support sustainable development . They can reduce both vulnerability and exposure, support post-disaster recovery and reduce financial burden on governments, households and business. Insurance mechanisms enjoy wide legal and regulatory acceptability among policymakers and are institutionally feasible . However, socio-cultural and financial barriers make insurance spatially and temporally challenging to implement , even though it can improve the health and well-being of populations . The risk of generating maladaptive outcomes can further limit the uptake of insurance, as it can provide disincentives for reducing risk over the long term . Expanding the knowledge base on insurance is fundamental to successfully implement insurance among all relevant stakeholders. Ensuring equitable access to and benefits from innovative financial products  is needed to guarantee successful uptake of insurance across all the population .
IPCC
Climate Change 2022: Impacts, Adaptation and Vulnerability
IPCC Report