Methodological Guidance to assess the Value for Money of Premium and Capital Support towards Climate and Disaster Risk Finance and Insurance
Value for Money, according to the principles, is defined as the ‘expected impact on poor and vulnerable countries’ and people’s resilience for each dollar of premium or capital support’. The principles also highlight that the value proposition of Premium and Capital Support (PCS) should include crowding-in, rather than undermining, private capital, ‘recognizing the key role that effective private insurance markets can play in resilience-building of developing economies’ .
This guidance note contributes to the practical implementation of the SMART Principles Value for Money approach. It does so by proposing a framework for the ex-ante assessment and comparison of different PCS options, aiming to inform and support decision-makers.