15  Risk Transfer 🚧

See first

This chapter builds on concepts from: - Exposure and Vulnerability - Expectations and Discounting

Learning objectives

• Explore financial instruments (insurance, reinsurance, catastrophe bonds) for spreading or transferring climate risk.
• Understand parametric insurance triggers and how they differ from indemnity-based approaches.
• Assess the role of public-private partnerships in risk transfer mechanisms.

15.1 Insurance/reinsurance fundamentals

15.2 Parametric vs. indemnity coverage

15.3 Catastrophe bonds, index-based schemes

15.4 Challenges in emerging markets and vulnerable regions

Further reading