Extreme weather events, intensified by climate change, are disproportionately affecting the world's most vulnerable populations. While social protection systems provide a critical safety net, they are frequently overstretched during disasters, struggling to deliver support at the speed and scale required.

MCII works at the intersection of climate change, risk finance, and social protection. Its efforts focus on closing protection gaps for climate-vulnerable populations by developing and scaling innovative insurance and risk finance solutions. By supporting governments and communities, MCII contributes to building resilience and ensuring that those most exposed to climate risks have tools to safeguard their lives and livelihoods.

A new Policy Note, developed by the Insurance & Risk Finance Facility of the United Nations Development Programme (UNDP) in collaboration with expert input from the MCII and UNU-EHS, addresses this critical issue. The publication explores how to integrate Climate and Disaster Risk Finance and Insurance (CDRFI) into social protection systems in climate-vulnerable countries. It warns that without making social protection systems responsive to climate shocks, frontline communities will suffer.

The publication's key messages focus on maximizing impact, driving long-term transformation, and ensuring readiness. It highlights that timely and effective CDRFI payouts can significantly strengthen resilience and accelerate progress toward the Sustainable Development Goals (SDGs). Achieving this requires systematic tracking through robust monitoring and evaluation.

The Policy Note also argues that integrating CDRFI into social protection can break cycles of poverty and vulnerability when designed for long-term impact. This means enhancing delivery systems to enable rapid scalability, precise targeting, and efficient payouts. Finally, the report stresses that smooth and timely payouts depend on strong contingency plans, risk mitigation strategies, and strengthened institutional coordination, legal frameworks, and financial management to ensure funds reach those in need quickly.

This is the second of a three-part series on risk-informed public financial planning for policymakers. The first part focused on integrating CDRFI into National Adaptation Plans (NAPs) and Nationally Determined Contributions (NDCs).

The full report can be accessed here. https://irff.undp.org/paper/social-protection-risk-finance-and-insurance

The earlier report on NAPs and NDCs can be accessed here. https://climatepromise.undp.org/research-and-reports/climate-and-disaster-risk-finance-and-insurance-cdrfi-national-adaptation