There is high confidence on risk spreading and sharing, most commonly arranged through insurance, as an adaptation option, but high to medium feasibility depending on context . Technological, economic and institutional feasibility is high, as insurance can spread risk, provide a buffer against the impact of climate hazards, support recovery and reduce the financial burden on governments, households and businesses . Insurance can shift the mobilisation of financial resources away from ad hoc post-event payments, where funding is often unpredictable and delayed, towards more strategic approaches that are set up in advance of disastrous events . By pricing risk, insurance can provide incentives for investments and behaviour that reduce vulnerability and exposure . Socio-cultural barriers, such as social inclusiveness, socio- cultural acceptability and gender equity constrains feasibility . Insurance can provide disincentives for reducing risk through the transfer of the risk spatially and temporally, distorting incentives for adaptation if the pricing is too low  and is often unaffordable, poorly understood, and not widely utilised in developing nations even when subsidised, possibly leading to maladaptation . Insurance can reinforce exposure and vulnerability through underwriting a return to the 'status-quo' rather than enabling adaptive behaviour  . For low-income nations and in the absence of global support, insurance shifts responsibility to those least responsible for climate change .
IPCC
Climate Change 2022: Impacts, Adaptation and Vulnerability
IPCC Report