This advisory report based on the SMART Principles for premium and capital support (PCS), developed in 2021 by the InsuResilience Global Partnership (IGP) for the purposes of scaling up climate and disaster risk and finance insurance solutions. It proposes methodological guidance to define the ‘scaling factor’ to determine the size/amount of premium support allocations. This guidance aims to support actors who are part of the IGP (such as the Programme Alliance) and policymakers and practitioners who are responsible for such allocation decisions.
The report was produced in partnership with the IGP secretariat, as part of a set of three advisory reports exploring issues in relation to the design and use of PCS, to help guide the further development of climate and disaster risk financing and insurance. These reports also contribute to the Global Shield against Climate Risks, a major initiative launched at COP27 in Sharm el-Sheikh. The Global Shield aims to increase ‘pre-arranged finance’, which can be disbursed quickly and reliably in anticipation of - or just after - a disaster occurs, to protect people and governments in developing countries against climate change impacts. You can find out more about the other reports here.