In a world increasingly shaped by climate extremes, financing resilience isn’t just a technical necessity—it is a moral imperative. That message resonated powerfully during the high-level expert dialogue “The Future of Climate and Disaster Risk Finance—From Evidence to Action,” held in Bonn on 25–26 June 2025. Co-organised by the Global Shield against Climate Risks, the event brought together policymakers, researchers, civil society, and private sector actors to ask a simple but urgent question: How do we transform knowledge into meaningful, inclusive financial solutions that protect lives and livelihoods?
Over two days, participants unpacked the complexities of Climate and Disaster Risk Finance and Insurance (CDRFI), examining what it will take to scale up pre-arranged financing that is inclusive, evidence-based, and country-driven.
Turning Knowledge into Policy: The Shifting Evidence Landscape
One of the dialogue’s core insights was the growing momentum to align climate risk finance more closely with evidence—not just academic, but experiential and grounded in the realities of vulnerable communities. The Evidence Roadmap, developed previously under the InsuResilience Global Partnership, together with the Munich Climate Insurance Initiative (MCII), reflected this shift. And it was now time to take stock and assess progress along these lines.
But robust data alone isn’t enough. As Dr. Astrid Zwick, Co-Director of the Global Shield Secretariat pointed out, finance must be not only effective but also equitable. Integrating gender analysis into risk financing is no longer optional—it’s foundational. With support from the Global Shield-hosted Centre of Excellence on Gender-Smart Solutions, the dialogue highlighted how inclusive financing strategies can address deeply embedded vulnerabilities, ensuring no one is left behind when disaster strikes.
Building Inclusive Pathways to the Pre-Arranged Finance Architecture
Throughout the discussions, a central theme emerged: equity must be designed into the system, not added as an afterthought. This was particularly evident in the session on gender-specific pathways to pre-arranged finance, which drew on research from Oxford Policy Management. Barriers like fragmented data, limited financial access for women, and persistent policy gaps all point to the need for more inclusive tools and processes.
The Global Shield’s collaboration with the Centre of Excellence on Gender-Smart Solutions (CoE) signals a new way in reimagining CDRFI—one where disaster risk finance is viewed through a social lens, recognising that vulnerability is shaped by far more than geography. Socio-cultural and economic factors play a critical role, and addressing these must be part of any serious financial resilience strategy.
In addition, the CoE supports the training of women insurance supervisors, offering fellowships to the Leadership and Diversity Programme for Regulators, jointly sponsored by the Access to Insurance Initiative (a2ii), and taught by Women’s World Banking and Oxford University’s Saïd Business School, with a view to including gender into political frameworks, amongst other initiatives.
Advancing CDRFI Through Country-Led Action: Local Leadership, Global Learning
The future of CDRFI is also being charted from the ground up. Six Global Shield partner countries Malawi, Ghana, Costa Rica, Pakistan, The Gambia and Somalia shared their experiences of applying disaster risk finance at national and community levels. These stories demonstrated that proactive, pre-arranged financing solutions—such as drought insurance—can improve a country’s ability to manage shocks.
Costa Rica stood out as a model, showing how integrated risk financing—from rapid-response funds to increased access to insurance—can be woven into broader climate resilience strategies. These approaches aren’t just about money; they’re about foresight, coordination, and trust. And they work best when countries are in the driver’s seat, shaping solutions based on their unique risk profiles and priorities.
Looking Ahead: Navigating Shifts in Pre-Arranged Finance
As the global financial landscape rapidly evolves, the future of climate and disaster risk finance faces both new challenges and opportunities. The high-level panel “Navigating Shifts: The Future of Pre-Arranged Finance in a Changing Financial Architecture”, featuring government representatives from Costa Rica, Somalia and Malawi, as well as leadership from the Santiago network Secretariat, AXA Climate and CARE Climate Justice looked to the horizon, acknowledging the fast-changing landscape of international finance. With rising debt, increased climate volatility, and a patchwork of financial instruments, the challenge is clear: how to design systems that are agile, inclusive, and scalable.
Key strategies emerged, such as integrating resilience into national development planning, strengthening technical assistance for vulnerable countries, and leveraging public-private partnerships to unlock new sources of capital. Yet, participants also stressed the vital role of civil society in ensuring that these mechanisms remain grounded, accountable, and centred on those who need it most – vulnerable people and communities.
From Dialogue to Action
What made this dialogue different was not just the quality of ideas—it was the shared commitment to act on them. The conversations reaffirmed that the future of climate and disaster risk finance lies in collaboration across sectors, the use of inclusive evidence, and supporting locally led initiatives.
As climate risks intensify, the world cannot afford business as usual. Finance must become a tool not just for recovery, but for anticipation, adaptation, and empowerment. That future is within reach—if we are bold enough to build it, together.
A special thanks to our fellow co-organisers:
Munich Climate Insurance Initiative, United Nations University – Institute for Environment and Human Security (UNU-EHS), Climate Vulnerable Forum and V20 Finance Ministers (CVF-V20) Secretariat, University of California, Davis.