Disaster Risk Finance and Insurance Program

The WBG has long experience in developing new financing mechanism, including insurance, to manage risks, including climate and disaster shocks and more recently pandemics. Establishing such mechanisms in advance strengthens leverages market risk capital, strengthens government ownership of response, and reduces costs. Early action supported by pre-planned financing, not only saves lives, reduces costs since $1 spent on early action case saves up to $5 in late response financing. Working closely with the private sector on financial innovation for risk management is one aspect of our overall focus to maximize financing for development through private expertise and capital.