Regulating Climate and Disaster Risk Insurance in Asia: Realities and Options
This paper explores the role of insurance supervisors in supporting Climate and Disaster Risk Insurance (CDRI). The target audiences of this paper are insurance supervisors, as well as the
diverse government and non-government institutions and agencies involved in insurance, climate adaptation, and disaster risk management.
The paper describes the barriers in policy making, market development, regulation and supervision as well as innovative approaches to overcome them. It raises a wide range of open
questions related to CDRI such as:
o Is a legal definition for CDRI required (per jurisdiction)?
o How can affordability and take-up of inclusive CDRI be improved?
o What are the lessons learnt as of today regarding insurance pools?
o What capacity building measures could be beneficial to insurance supervisors and other actors?
o What lessons can be drawn from market development and regulation in microinsurance that can be applied to CDRI?
The paper concludes with recommendations about next steps that can be taken up by various stakeholders, from supervisors and policy makers to development cooperation agencies. The
recommendations are targeted at generating an enabling environment to close the protection gap for financial climate risk management, while putting safeguards in place and motivating the potential consumers to access and purchase inclusive, reliable, and affordable CDRI products.