WFP submission to WIM on best practices, challenges and lessons learned from existing financial instruments

The World Food Programme is pleased to share inputs on forecast-based risk transfer financial mechanisms and micro-insurance initiatives in response to the call for submission from the Executive Committee of the Warsaw International Mechanism for Loss and Standing on best practices, challenges and lessons learned from existing financial instruments.

These financial instruments address the following characteristics highlighted in the Executive Committee’s call for submission: comprehensive risk management capacity; risk pooling and transfer; contingency finance; and financing approaches to making development climate resilient and at different scales. The financial instruments presented here also are applied in the context of social protection, risk reduction, preparedness, response and recovery, and building resilience against loss and damage associated with extreme and slow onset events. The examples demonstrate how these instruments are implemented to benefit vulnerable food insecure population in developing countries, how these instruments can address different types of loss and damage, and what good practices and lessons have been learned on the application of these instruments.