Climate change is increasing the frequency and severity of extreme weather events around the world, and unless social protection systems can adapt to this rising challenge, the most vulnerable will suffer the most. Against this background, this Policy Note focuses on better integrating Climate and Disaster Risk Finance and Insurance (CDRFI) into social protection systems in developing countries, while examining how these systems can be strengthened to deliver CDRFI payouts quickly and equitably when disasters strike.

Key message from the policy note: Integrating CDRFI into social protection can strengthen resilience and address several root causes of poverty and vulnerability (e.g., lack of access to education and healthcare, discrimination, and marginalization), but measures are needed to address weaknesses in existing social protection systems and to ensure the efficient and effective utilization of CDRFI payouts for emergency responses and developmental impacts.

The report is part two of a three-part policy series on risk-informed public financial planning, including risk finance policies for policymakers and development actors working closely with governments. Read the first part on CDRFI in National Adaptation Plans (NAPs) and Nationally Determined Contributions (NDCs) here.