Rethinking Premium Support: Enhancing The Impact And Sustainability Of Climate Risk Insurance

This insight paper aims to support policymakers and practitioners as they seek to scale up financial protection against climate-related shocks through sovereign insurance solutions. It explores the complexities of international premium support and identifies core problems with current approaches to the allocation and design of premium subsidies. It proposes some basic but vital shifts needed in the way premium support is designed, allocated and provided to create a more inclusive, transparent and sustainable approach.