Advancing Anticipatory Action through Innovative Insurance Solutions:

As climate-related disasters increase in frequency and severity, the imperative to shift from reactive response to anticipatory action has never been clearer. This working paper, jointly produced by Anticipation Hub and MCII, presents an in-depth analysis of emerging insurance mechanisms that enable the timely release of funds based on forecasted hazards.

Drawing on case studies across macro, meso, and micro levels—from Africa, the Pacific, and Central America — the paper examines how forecast-based triggers linked to insurance payouts are strengthening resilience and enabling proactive interventions. While these innovations demonstrate significant promise, the paper also identifies critical challenges such as premium affordability, trigger accuracy, and institutional readiness that must be addressed to scale up these instruments effectively.

This comprehensive synthesis provides practical recommendations for policymakers, practitioners, and stakeholders seeking to integrate disaster risk financing with anticipatory action frameworks, thereby advancing a more proactive approach to humanitarian preparedness and climate resilience.

We invite practitioners, policymakers, and stakeholders to engage with this work and contribute to shaping sustainable financial solutions for early action.