Experts from the Asian Development Bank and the National University of Singapore are urging Southeast Asian countries with extensive coastlines to consider implementing parametric insurance, which can expedite disaster recovery and mitigate financial risks associated with climate change impacts, such as rising sea levels and extreme weather events.
Parametric insurance pays out based on specific natural parameters, like storm strength, allowing for quicker payouts and aiding in disaster response, making it a valuable tool for coastal communities vulnerable to climate-related risks.
Additionally, involving local communities in adaptation efforts is deemed crucial for successful coastal resilience strategies.
