Adapting to climate change will require financial resources. For the most vulnerable, only part of these resources are likely to be met by governments and the Convention's financial provisions. Lack of public funding has led to exploration of insurance schemes (public and privately funded). Experience of insurance markets, including responses by the industry to the increased frequency of extreme weather events, is useful in guiding policy developments in this area. The article suggests there are limits to the availability of commercial weather-related insurance in developed and developing countries. Micro-finance schemes may be useful. Additionally, the financial services sector may end up playing a role in prompting mitigation responses in order to prevent some climate impacts from occurring and thus limit the amount of adaptation insurance/funding needed in the future.
Hamilton, K
Insurance and financial sector support for adaptation
Ids Bulletin-Institute Of Development Studies