The Dominican Republic has become the first country in Latin America and the Caribbean to integrate parametric insurance into its adaptive social protection system. Developed through the Tripartite Agreement between the United Nations Development Programme (UNDP), the Insurance Development Forum (IDF), and Germany’s Federal Ministry for Economic Cooperation and Development (BMZ) through the InsuResilience Solutions Fund (ISF), the initiative will initially protect 3,030 climate-vulnerable households enrolled in the Supérate conditional cash transfer programme in Santo Domingo Norte and Puerto Plata.
A new chapter for climate resilience and social protection
The new insurance policy, activated on June 15 and announced at the Hamburg Sustainability Conference, provides an additional layer of protection for households most exposed to climate-related events. The objective is not simply to compensate losses after a disaster but to ensure that financial assistance reaches affected families quickly, allowing them to cope with shocks before they escalate into long-term crises.
By strengthening the government’s ability to respond rapidly, the programme transforms public support into timely and tangible assistance for communities facing extreme weather events. This approach reflects a growing recognition that climate resilience depends as much on speed and preparedness as on recovery.
For AXA Climate, a member of the consortium that designed the solution, this milestone demonstrates how insurance can move beyond traditional compensation mechanisms to become a proactive tool for social resilience. By embedding risk financing directly into social protection systems, governments can deliver faster and more predictable support to vulnerable populations exposed to growing climate risks.
Harnessing Parametric Insurance to Strengthen Climate Resilience at Scale
The Dominican Republic’s approach combines social protection, financial innovation and climate resilience within a single framework. Integrating insurance into the Supérate programme creates a mechanism that helps vulnerable households recover faster from climate shocks while reinforcing social inclusion.
Beyond its immediate impact, the initiative offers a potentially scalable model for other countries seeking to strengthen climate resilience. As climate-related disasters become more frequent and severe, governments are increasingly exploring ways to build anticipatory systems that protect people before vulnerabilities turn into humanitarian or economic crises.
The insurance product uses a parametric mechanism that automatically triggers payouts when predefined thresholds for excessive rainfall or strong winds are reached, using independently verified satellite and meteorological data.
Public-private partnerships at the heart of resilience
The initiative highlights the role of collaboration between governments, development institutions and the private sector in addressing climate risk. Building resilience requires systems capable of anticipating and managing risks before disasters occur, and no single actor can achieve this alone.
Implemented by the Dirección de Desarrollo Social Supérate (DDSS), UNDP and the IDF, the programme combines public-sector leadership, development expertise and insurance-sector innovation. It demonstrates how partnerships can create practical solutions that strengthen resilience where it matters most: among vulnerable households and communities.
The insurance solution was designed by an IDF consortium comprising Guy Carpenter Mexico, AXA Climate, Blue Marble, CelsiusPro and local insurer Seguros Reservas, with co-financing provided by consortium members and the InsuResilience Solutions Fund.
For AXA Climate, the project reflects a broader ambition to use insurance expertise, climate science and technology to help societies adapt to a changing climate. By developing solutions tailored to local needs and integrating them into public policy frameworks, insurance can become a powerful enabler of sustainable development and climate adaptation.
A blueprint for adaptive social protection
This first phase represents an important step towards a more adaptive and anticipatory social protection system. By combining smart public policy, innovative finance and strategic partnerships, the Dominican Republic has created a practical model for protecting vulnerable households from climate shocks.
As countries around the world seek new ways to address rising climate risks, this initiative demonstrates how insurance can strengthen preparedness, support fiscal resilience and accelerate recovery. More importantly, it shows that climate resilience is not only about rebuilding after disasters—it is about ensuring that people have the tools and support they need before disaster strikes.
