V20 Viewpoint on Premium and Capital Support

Providing concessional financing e.g., through premium and capital support (PCS), specifically in the context of climate and disaster risk insurance (CDRI), is now being discussed globally as an important tool to enable and encourage the use of CDRFI by directly or indirectly reducing the costs to beneficiaries. Given the current fragmentation and rather arbitrary, ad-hoc and non-transparent provision of PCS to individual pools, governments and insurance schemes, the development of a reliable, rules-based provision of PCS and a coordinated and transparent delivery structure is key to increase the uptake of CDRFI in light of constrained financial resources and competing development priorities.