Building on a Multi Criteria Cost Effectiveness Analysis (MCCEA), this paper aims to develop an assessment framework that facilitates the comprehensive understanding of cost-effective climate risk insurance (CRI) approaches for vulnerable populations. MCCEA helps compare and select risk financing instruments based on their costs and overall effectiveness: Instead of taking a one-dimensional approach that only compares costs per unit of effectiveness, MCCEA conceptualizes cost-effectiveness more holistically.

The paper defines the determinants of cost-effectiveness as well as their drivers and corresponding key performance indicators (KPIs). The resulting framework is then applied to illustratively analyse four different schemes: ARC, CCRIF SPC, PCRAFI, R4.