This report investigates the political economy of country decision-making in relation to sovereign-level climate and disaster risk finance and insurance, and the role of premium and capital support (PCS) in these decisions. The study aims to further global understanding on the uptake, size and value of PCS. It also analyses the political economy of donor decisions in relation to the provision of PCS.
The report was produced in partnership with the InsuResilience Global Partnership (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.