This document proposes an insurance module with two pillars (prevention and insurance) as part of a multi-pillar adaptation fund. The Prevention Pillar puts the reduction of human and economic losses as its top priority. The Insurance Pillar has two tiers. The first tier is a Climate Insurance Pool that would absorb a pre-defined proportion of high-level risks of disaster losses in vulnerable countries. The second tier, a Climate Insurance Assistance Facility, would provide technical support and other forms of assistance to enable public-private insurance systems that provide cover for the middle layers of risk in these countries. This two-tiered insurance pillar would (1) meet the principles set out by the UNFCCC for financing and disbursing adaptation funds (2) assist the most vulnerable, and (3) include private market participation.