despite the relatively low cost, uptake remains low due to affordability constraints, lack of awareness, access to and trust in products, distribution challenges, basis risk, poor transparency, challenges regarding the integration of complementary interventions  and poor perceptions/ norms of insurance and risk transfer. Lack of data and models further hinders insurers' ability to price risk correctly, which reduces value to clients . Impact assessments point to potential but remain context- specific . In addition, there is no comprehensive overview of the number of people covered by such schemes, nor of the value they provide in terms of actual claims payouts. Lastly, donor and/or public funds still play an outsized role in launching and/or sustaining these schemes and schemes beyond weather and drought remain limited .
IPCC
Climate Change 2022: Impacts, Adaptation and Vulnerability
IPCC Report