Fostering micro‑disaster risk finance in Emerging Asia

Disaster-related damage in Emerging Asia reached USD 685 billion between 2010 and 2024. Despite these growing losses, most disaster impacts remain uninsured, leaving households, small businesses and communities vulnerable to financial shocks and slowing recovery after disasters. This policy brief explores the role of micro-disaster risk finance in helping close protection gaps and strengthen resilience across the region. It examines how financial tools designed for individuals and communities, including microinsurance and micro-catastrophe bonds, can provide more timely and targeted support following disasters. The brief highlights the importance of understanding local risks and needs, as well as improving the availability of community-level data, to better tailor financial protection solutions. As climate-related and other disaster risks continue to increase, expanding access to appropriate and affordable financial protection can help vulnerable populations recover more quickly, reduce economic hardship and support long-term resilience in Emerging Asia.