Located between the Pacific Ocean and the Caribbean Sea, Costa Rica is famed for its natural beauty but also ranks among the world’s most climate-vulnerable nations. Floods, droughts, earthquakes, and other recurring hazards put lives, livelihoods, and public finances at risk, highlighting the urgent need for stronger disaster risk management and financing systems.
In May 2025, Costa Rica’s Ministry of Finance submitted its official Request for Climate and Disaster Risk Financing and Insurance (CDRFI) Support to the Global Shield. In reply to this request, and as part of a coordinated approach with the other Global Shield Financing Vehicles and Coordination Hub members, the Global Shield Solutions Platform (GSSP), managed by Frankfurt School of Finance & Management, , co-designed a consolidated, tailored Support Package that will help Costa Rica strengthen its financial protection systems and ensure faster, more effective responses to disasters.
The Support Package is structured around four workstreams:
- Assessing the feasibility and establishing the infrastructure of a National Open-Access Risk Platform to enable the development of a required methodologies for the quantification of the financial protection gap and to facilitate the development of insurance products by Costa Rican insurers.
- Support for the Insurance Sector Development & Enabling Environment through thebuilding of technical and actuarial capacities, and enhancing financial literacy on climate risk insurance, including index insurance.
- Tailored support for the Development of Insurance Solutions targeting one of the key sectors defined by Costa Rica’s Ministry of Financesuch as public infrastructure, agriculture, fisheries, or natural ecosystems.
- Support for the CDRFI In-Country Implementation support structure to oversee the efficient implementation of CDRFI support activities, strengthening and ensuring a coordinated and country-led effort and efficient implementation.
Costa Rica is the first country in Latin America and the Caribbean to officially access support from GSSP. This pioneering partnership represents a milestone for the region, showcasing how innovative CDRFI solutions can help countries prepare for and withstand climate shocks.
“For SUGESE, the implementation of this Support Package represents a strategic opportunity to strengthen the protection of the most vulnerable sectors against the risks of climate change and disasters through insurance and financial instruments, as well as to reinforce the risk management capacities of the insurance sector and the population in general. We are fully committed to promoting its implementation in Costa Rica, so that the country can face the challenges associated with climate change with greater strength and resilience, both in the financial and productive systems, especially among the most vulnerable groups.”, said Tomás Soley Pérez, General Superintendent of Insurance at SUGESE.
“Costa Rica is taking important steps to strengthen its resilience to climate risks. With this Support Package, we aim to equip Costa Rica with practical tools, stronger financial systems, and innovative CDRFI solutions. This partnership shows how the Global Shield can help turn climate risk into an opportunity for preparedness and protection.”
Dr. Annette Detken, Head of Global Shield Solutions Platform
By strengthening financial resilience, Costa Rica is not only protecting its present but also investing in the security of future generations. Together with GSSP, the country is leading the way for others to follow, proving that preparedness and innovation are the keys to climate resilience.