A Qualitative Study on Climate Risk Insurance

Abstract

Climate change is gradually destroying natural ecosystems and the quality of human life, particularly in vulnerable countries such as Vietnam, rendering climate risk insurance an essential mechanism for managing and financing losses associated with climate-related disasters. This study examines the current landscape of climate risk insurance policies globally and in Vietnam, with the aim of developing context-specific policy recommendations. Despite the growing importance of climate risk insurance, existing studies rarely examine enabling policy conditions and feasible product design simultaneously, particularly in emerging markets. Using qualitative in-depth interviews with individuals, households, businesses, insurance providers, and regulators, the study explores key challenges in the development of climate risk insurance in Vietnam. The findings reveal several major barriers, including limited public awareness, weak market penetration, low affordability of insurance premiums, incomplete regulatory frameworks, and a lack of institutional coordination. Based on these findings, the study proposes feasible short- and long-term policy recommendations tailored to Vietnam’s current institutional and market context, contributing to ongoing efforts to strengthen resilience and promote climate insurance as a tool for sustainable development.