A consortium consisting of the SYRR group of IIASA, ETH Zurich, and the InsuResilience Solutions Fund (ISF) will undertake macro-level socio-economic risk modelling, scenario assessment and policy analysis to understand how public sector climate and disaster risk financing strategies interact and complement risk reduction interventions in order to strengthen the resilience of vulnerable countries. IIASA will build on its CatSim Model to not only assess fiscal implications but also study broader resilience impact on relevant case study countries studied. The project will finally seek to develop recommendations on the design of smart support regarding comprehensive risk management for the case study countries.

With increasing impacts of climate change, the need to complement physical risk reduction measures with climate finance instruments becomes ever more pressing. However, the research on risk reduction effectiveness, socio-economic co-benefits, and conclusions on best practice regarding the integration of risk reduction and financing approaches remains scarce.

To answer these questions and provide systemic and consistent policy recommendations, this project aims to design a holistic framework for understanding ‘smart support’ opportunities for investing into climate disaster risk management.

The analysis of integrated risk management measures will be based on the risk layering approach as informed by CLIMADA model of ETH (risk reduction layer) and IIASA’s CatSim (financial and retention layer) including layer interactions. Relevant case study country explorations provide the background against which to develop the model framework and analyses.