Climate change is a reality and progressing. As extreme weather events such as droughts, floods and tropical cyclones increase in frequency and intensity, they place significant stress on societies and natural systems. Pacific Island Countries are particularly vulnerable to extreme weather. These events lead to loss of income and productive potential, forcing affected low-income individuals to use a variety of coping strategies that include: reducing food consumption, taking children out of school, borrowing money, taking money out of their retirement fund, and selling assets. These strategies diminish their ability to cope with current and future climate change impacts. As a result, there is a growing need to explore meaningful options for managing and transferring risks associated with climate change. One helpful measure to support adaptation to climate change is climate risk insurance.