Role of Microfinance Institutions in Climate Risk Insurance: A Comparative Analysis of Developed & Developing Countries and Implications for Pakistan

Year Published
2025
2025
This study investigates the role of microfinance institutions (MFIs) in delivering climate risk insurance. Utilizing a mixed-methods approach, the research draws on quantitative data from financial reports of MFIs and qualitative insights from case studies in countries, including the United Kingdom, Italy, India and Bangladesh. In addition, this study identifies key strategies related to climate sustainability adopted by Pakistani MFIs. The findings reveal that MFIs are instrumental in providing tailored climate risk insurance products to vulnerable populations, especially those underserved by traditional financial institutions. However, the effectiveness and reach of these products vary significantly across regions due to differences in regulatory frameworks, financial resources, and socioeconomic conditions.
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