The Pacific Insurance and Climate Adaptation Programme aims to improve the financial preparedness and resilience of Pacific Islanders towards climate change and natural hazards through the development and implementation of market-based micro and meso insurance schemes. The programme will also work together with governments and relevant stakeholders to develop customized climate and disaster risk financing strategies

This document provides a brief overview of the instruments that are available and may be considered as part of the Climate Disaster Risk Financing (CDRF) strategy. While finance is necessary to effectively manage disaster risks, it is not sufficient. DRM plans must also integrate (and resource) risk assessment, institutional capacity building, risk reduction and mitigation, and emergency preparedness.

This CDRF overview will be used as a tool to strengthen the capacity of government officials and other stakeholders on available financial instruments, their strengths and weaknesses, and their appropriateness for different levels of risk.

The Pacific Insurance and Climate Adaptation Programme is a multi-year programme jointly implemented by UN Capital Development Fund (UNCDF), UN Development Programme (UNDP) and UN University- Institute for Environment and Human Security (UNU-EHS). "Developing Climate Disaster Risk Financing framework and Parametric Insurance in Fiji” project supported by the India-UN Development Partnership Fund is covered by the regional programme managed by UNCDF. The Programme receives financial support from the Governments of Australia, India and New Zealand.