This policy builds multi-layered risk protection systems that shield households, farmers, and communities from the economic and social impacts of climate shocks. Its design integrates early warning systems, anticipatory cash transfers, climate-indexed insurance, and public reinsurance mechanisms, with premiums for low-income groups subsidised or fully covered by the state.
Implementation requires coordination between social protection systems, disaster risk management agencies, and insurance regulators, as well as investment in robust climate and weather data systems.
The policy goal is to prevent climate events from pushing households into poverty or forcing harmful coping strategies such as child labor or asset liquidation.
This policy is desirable because it stabilises livelihoods, supports recovery, and builds resilience, ensuring that climate adaptation measures do not exclude or penalise the most vulnerable.
