Market-based disaster risk financing solutions, such as macro insurance policies purchased by governments to cover disaster losses, can enable faster, more cost-effective and predictable responses to climate and disaster shocks. A scale-up of climate and disaster risk finance and insurance solutions is urgently needed to enable governments and the humanitarian sector to strengthen safety nets for the most vulnerable and provide more timely financing and assistance to populations at risk. This factsheet provides a brief introduction to Sovereign Risk Finance and Insurance and how WFP is leveraging these innovative tools to better manage climate-related disaster risk.