Protecting Communities for El Niño and Beyond: How Parametric Insurance and Other Innovative Financing Mechanisms Can Support Climate Resilience for Displaced Communities
12 November 2026 · 15:00–16:30 (TRT) · Somalia Pavilion, COP31, Antalya, Türkiye
Climate and disaster-related displacement is increasing in frequency and scale, yet efforts to address it often remain fragmented across climate change and disaster risk reduction (DRR) policies, institutions, financing streams, data systems and implementation mechanisms. In the wake of the budget cuts of 2025 and ensuing contraction of the humanitarian system, innovative approaches are essential to ensure sustainable, resilient-enabling systems for communities, particularly those living in displacement such as internally displaced people and refugees.
However, over 60 percent of economic losses from climate disasters are uninsured globally, and in Africa just 0.5 percent of losses are covered, illustrating a critical gap in climate and disaster insurance.
Parametric insurance, also known as event or index-based insurance, is one such innovative approach from the finance sector. It provides a set amount of payment if a specific event occurs, using predetermined triggers such as level of rainfall or wind speed and payment mechanisms to enable swift payouts. In contrast to indemnity insurance, which pays the amount of the losses incurred and can take months or even years to settle claims, parametric insurance payments are automatic if an event occurs, and payouts can arrive in as little as 24 hours. Due to its speed, cost effectiveness, and the logic of payouts connected to events rather than losses, parametric insurance is increasingly seen as an important way to fill gaps in the insurance market and help address climate risks for populations that may be unable to benefit from traditional insurance.
Organised by: Somali Disaster Management Agency (SoDMA) · Refugees International
In coordination with: Ministry of Environment and Climate Change (MoECC)
