When floods, droughts, or other climate-related disasters strike, social protection systems are expected to step in fast. But too often, crises overwhelm these systems, pushing millions deeper into poverty.

In a new article for D+C Development and Cooperation, our expert Nazaruddin Puteh and James G. Bennett examine how sovereign climate risk insurance and other pre-arranged financing tools can give governments the means to respond quickly and reliably. From insurance payouts to loans and contingency funds, these instruments can channel resources into adaptive social protection systems - ensuring relief reaches communities when it is needed most.

The article raises a vital question: Do these tools simply fill short-term funding gaps, or can they also strengthen long-term resilience and reduce poverty?