The United Nations Office for Disaster Risk Protection (UNDRR) has published details of a proposal for a high-level Disaster Resilience Adaptation Financing (DRAF) structure that features an insurance-linked securities (ILS) vehicle, to support disaster risk insurance coverage and resilience adaptation financing.
In a commentary authored by Alissa Legenza and Shaun Tarbuck, members of the UNDRR’s Investor Advisory Board (IAB), the pair reveal that the DRAF solution offers a dual-vehicle structure, that combines a disaster risk insurance financing vehicle with a tailored debt financing vehicle to address both immediate disaster response needs and long-term resilience adaptation investments.
“This integrated approach allows for targeted capital deployment across varied timescales and geographic scales, from local community projects to large national initiatives,” the pair explain.
FULL ORIGINAL PUBLICATION HERE