The need is greater than ever to reduce and transfer risk in ways conducive to climate change adaptation and sustainable development. Thus, two key issues demand attention: first, to incentivize risk reduction and loss prevention, and second, to bridge the financial gap when losses occur, delivering climate insurance solutions that work. Climate negotiators have posed a series of questions about how risk reduction and insurance could be put into action, in the context of a post-2012 UNFCCC adaptation strategy. This Policy Brief presents answers to many of the central questions and points to practical examples from current experience.