Climate Change
Early Warning & Risk Analysis
Global Issues
Pete Ogden, Ben Bovarnick, and Yume Hoshijima
Policy Brief

Parametric risk insurance—insurance policies that use environmental measurements, such as wind speed or the amount of rainfall, to trigger an immediate payout—can play a key role in reducing the risks of climate change in developing countries. This report examines the ways in which parametric insurance programs can most efficiently limit the risks that climate change poses to developing countries.