This Discussion Paper explores the potential complementary roles of informal risk-sharing arrangements (IRSA) and climate risk insurance (CRI) in building resilience to climate change impacts, especially in vulnerable communities. It addresses whether these two tools can work together to strengthen resilience or if CRI could undermine the benefits of existing informal systems and aims to provide a deeper understanding of how these instruments can coexist and potentially improve the effectiveness of risk management strategies in the face of increasing climate extremes.