Portfolios of adaptation options generally include actions to reduce vulnerability and exposure, complemented by risk financing mechanisms that help people avoid the impacts of loss events, particularly very rare ones. There is also explicit or implicit risk retention, where further risk management is not desirable, cost-effective or feasible . Risk financing can include a variety of instruments, with insurance as the most widely known. Formal insurance uptake is lower in developing and emerging economies than in wealthier countries (Ali
IPCC
Climate Change 2022: Impacts, Adaptation and Vulnerability
IPCC Report