This report presents the rationale for and design of a city government disaster insurance pool in the Philippines. Insurance pools help governments enhance their financial preparedness for disasters, focusing on the provision of rapid post-disaster financing for early recovery. The Philippine City Disaster Insurance Pool was developed under the guidance of the Department of Finance as part of the 2015 Disaster Risk Financing and Insurance Strategy. It utilizes a parametric insurance structure, basing payouts on the occurrence of earthquakes and typhoons according to their physical features, rather than actual losses.

This guidance note underscores the importance of scaling up climate change resilience-building measures through community-driven projects. The poor and vulnerable populations suffer disproportionately from the adverse impacts of climate change and disasters, which result in loss of life, damage to household and community assets, disruption of livelihoods, and loss of income. Solutions that recognize localized risks and address them in the context of wider socioeconomic development are needed. This guidance note underscores the importance of scaling up resilience-building measures through community-driven development projects. It proposes a framework that recommends five key considerations that should be factored in the design and implementation of community-driven development projects to ensure that they deliver on scaling up of resilience-building measures.