Overseas Development Institute (ODI)

Climate change threatens development and economic growth in semi-arid lands. Climate-related risks will increase for individuals, businesses
and infrastructure and have consequences in all sectors of the economy. Climate change will have significant impacts on economic activity and value
chains as economic actors are forced to alter their production systems to maintain their production capabilities under changing conditions.

This working paper applies the triple dividend of resilience framework to disaster risk insurance, in order to explore the potential contribution that insurance can make to building resilience and driving development at different scales in developing countries. While we recognise that insurance is only one component of a larger toolbox of risk financing instruments and of disaster risk management more generally, this paper focuses on disaster risk insurance to add an evidence-based perspective on the (co-)benefits and costs of such mechanisms to the broader debate.