Regional risk pools

Regional risk pools are insurance providers which cover climate and disaster risks for several countries based on the payment of premiums. The system relies on the pooling of risks, a fundamental principle of insurance, which facilitates better risk diversification. Many of these schemes are based on parametric insurance, meaning that payouts are triggered by predefined parameters, for instance regarding rainfall or wind speed. The pooled solution facilitates risk diversification and more cost-effective insurance coverage. When a disaster occurs, the countries covered by the insurance quickly receive funding that can then be used to assist those in need.

There are four major regional risk pools:

The Pacific Catastrophe Risk Insurance Company (PCRIC) (External link) offers Pacific island nations parametric disaster insurance to cover tropical cyclones and earthquakes.
The African Risk Capacity (ARC) (External link) currently gives 39 countries in Africa access to parametric insurance against drought, flood and hurricane damage in combination with support for early warning systems and contingency plans. In addition, the insurance product for governments has been complemented since 2018 by ARC Replica, which covers humanitarian entities such as Start Network and the United Nations World Food Programme. This instrument further broadens the financial protection of vulnerable communities.
The Caribbean Catastrophe Risk Insurance Facility (CCRIF) (External link) SPC provides parametric insurance including technical advice on recovery. It covers earthquakes, hurricanes and heavy rainfall and can be used both by governments and by private sector entities in Central America and the Caribbean.
The Southeast Asia Disaster Risk Insurance Facility (SEADRIF) (External link) operates via SEADRIF Insurance Company and offers insurance products against floods and other natural hazards, with a special focus on Laos. It is also working to develop other insurance products for South-East Asian countries.

New risk pool schemes are also emerging at the municipal level. For example, the Urban Infrastructure Insurance Facility (UIIF), which is receiving support from the BMZ via KfW Development Bank, pools risks for cities in Latin America and the Caribbean in order to give them affordable protection against natural disasters.

Risk pools have repeatedly proven their effectiveness – most recently in 2025, when Hurricane Melissa hit Jamaica and quick payouts from CCRIF insurance products were able to provide rapid relief. Countries can shoulder their share of the premiums themselves or apply for premium support, for instance as part of their requests for support from the Global Shield.

First global and regional programme: Global Shield Programme for Resilient Risk Pools (GSRRP)

The GSRRP strengthens regional risk pools and their mutual cooperation. The Programme's purpose is to enable the regional risk pools to enhance their products, develop their technical and institutional capacity and exchange knowledge and experience, with a view to being able to provide quicker and more predictable financial assistance in response to disasters.

The four regional risk pools – in Central America and the Caribbean (CCRIF SPC), Africa (ARC Ltd.), the Pacific (PCRIC) and South-East Asia (SEADRIF) – are eligible to request support under the GSRRP.