"CCRIF shows how climate risks can be transferred away from public budgets to the commercial insurance market, thus pre-financing disaster recovery efforts." There are also other, more affordable risk management measures that many islands are not implementing. The Cayman Islands, for instance, could cost-effectively avoid "up to 90% of expected losses" by implementing risk management measures such as constructing sea walls and enforcing building codes. On the other hand, for places such as Dominica, implementing such risk management measures can avert only 2% of the calculated loss.
To address the remaining risk, the island's government must turn to insurance.