Macro-level disaster risk finance (DRF) tools are a crucial way to respond swiftly, cost-effectively and reliably to climate and disaster shocks. Linking these tools to social protection systems ensures that assistance reaches the most vulnerable people effectively and in a timely manner in the face of an extreme weather event. This factsheet highlights WFP’s work on Sovereign Disaster Risk Financing and how WFP is leveraging social protection systems to ensure swift and targeted assistance in the Latin America and the Caribbean (LAC) region. It also provides an insight into countries where WFP implements sovereign level insurance, challenges, lessons learned, and the plans to expand these tools in other countries.
Sovereign Disaster Risk Financing: Linking Insurance & Other Disaster Risk Finance Tools to Social Protection Systems in Central America and the Caribbean - July 2023
WFP is at the forefront of advocating for sovereign insurance products that provide rapid financial assistance to communities affected by disasters. By integrating DRF with social protection systems vulnerable individuals can receive effective and targeted assistance in response to climate shocks