The paper highlights that if appropriately embedded among risk reduction measures and with the right incentives, insurance has important potential to reduce disaster risk and advance adaptation. To realize that potential, the paper identifies some considerations for designing insurance programs that promote risk reduction. These include careful planning and close coordination in the implementation of insurance with disaster risk reduction measures; raising community risk awareness; investing in the gathering and dissemination of risk information; government regulation to ensure a longer-term focus on risk reduction from insurers; and government regulation to ensure insurer solvency, licensing, and insurance distribution.