A warming climate brings along increasing risks, part of which can be reduced or insured. What remains is called residual risks and needs to be retained by households, the private and public sectors. People living in conflict-affected areas benefit only marginally from adaptation investments by governments, private sector or other institutions. These people bear most of the changing climate risks themselves. Higher-income countries generally have invested heavily in structural adaptation to make sure people are not exposed to extreme events  and have developed a variety of private or public insurance systems to finance the risk of the most rare or extreme events. In other, middle- or lower-income countries, these very extreme events are less likely to be insured, and the impacts are borne by the most vulnerable people. Absent risk reduction or insurance, coping with residual risks generally means reducing consumption  or drawing down assets , which all can bring along longer-term adverse developmental implications. Adaptation investments in low-income countries tend to focus more heavily on increasing capacity and reducing vulnerability; people remain exposed to the changing climate risks and bear the burden of reacting and responding.
IPCC
Climate Change 2022: Impacts, Adaptation and Vulnerability
IPCC Report