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Climate Risk Insurance: Economic Impacts of Natural Hazards on Vulnerable Populations

The South Pacific region is extremely vulnerable to natural hazards like cyclones, droughts, earthquakes, tsunamis and other natural disasters. The accelerated frequency and severity of the disasters due to climate change have disrupted economic and social progress as well as development gains. With no adequate insurance protection and coverage in the region, the economic impacts especially on vulnerable populations, have been devastating.

To better understand the challenges, gaps and opportunities around climate risk insurance, this literature review was conducted by UNCDF for identified focus countries in the Pacific. These reports examine and present the current knowledge and substantive findings on economic impacts of natural hazards on vulnerable populations in Fiji, Tonga and Vanuatu.

The UN Capital Development Fund makes public and private finance work for the poor in the world’s 47 least developed countries (LDCs). With its capital mandate and instruments, UNCDF offers “last mile” finance models that unlock public and private resources, especially at the domestic level, to reduce poverty and support local economic development.