Insuring Climate Resilience

"Every $1 invested in disaster mitigation actually saves at least $4 of disaster response money."

Small Island Developing States are vulnerable to storms, hurricanes and cyclones – all of which are intensified by climate change. Without insurance, the impact of these natural disasters can be even more devastating.

As Rebekah Clement from Lloyd's explains, the insurance industry can support disaster resilience in these nations by providing financial protection against extreme weather events, enabling rapid recovery.

Many innovative financial products are emerging to meet the unique needs of Small Island Developing States. One of these is parametric insurance, which can offer instant payouts based on a pre-defined trigger such as wind speed or flood water levels.

Beyond disaster relief, there is an opportunity for the insurance industry to drive investment in disaster adaptation efforts, such as mangrove protection. With investment lagging behind in nature-based disaster risk management however, cross-sector collaboration will be key.

To learn more about Lloyd's visit their website.