Reports / Studies

Methodological Guidance: Determining the ‘Size’ of Premium and Capital Support at Macro-level PRE-PRINT

This document proposes methodological guidance to determine the ‘size’ of premium and capital support (PCS) at macro-level. It is based on the ‘SMART PCS Principles’, developed by the InsuResilience Global Partnership (IGP) to scale-up the Climate and Disaster Risk and Finance Insurance (CDRFI) solutions (see Box 1). Conceptual guidance on what considerations need to be taken to determine the size/amount of PCS is provided across all five SMART PCS Principles. Principle ‘A’ (accessibility) in the SMART PCS concept note (hereafter Policy Note) argues “transparent, uniform and consistent criteria for needs-based PCS levels should be formulated” to guide donors in determining an “uptake-enabling” size of PCS intervention (Töpper and Stadtmüller, 2022).

Topic / Theme:

Risk Finance

Solutions / Instruments:

SMART Premium and Capital Support, Sovereign Risk Transfer

Year:

2022

Author:

V. Panwar, J. Ward., L. Weingärtner and E. Wilkinson

Pages:

30

Language:

English

Organization:

InsuResilience Global Partnership