Solution A single institution that represents the place - a community organization, municipality or homeowners’ association - arranges one policy covering many households at once, giving the community better negotiating power, lower cost per household and the ability to link cover directly to local risk reduction. Key challenge If households and businesses are uninsured or underinsured this can prolong local disruption and delay wider community recovery after an extreme weather event: around 14% of US homeowners have no cover at all, a figure that rises to over 90% in low-income Asian economies, while 74% of small businesses globally are underinsured. Context Conventional insurance fails those who need it most. Low- and moderate-income households in New York City’s flood-exposed urban neighbourhoods are hit hardest and recover slowest: they hold few savings and are often unable to access post-disaster loans, while federal assistance arrives late or not at all. A 2021 framework developed by Guy Carpenter with the Wharton Risk Center set out an alternative: community-based catastrophe insurance (CBCI), in which a community institution arranges cover on behalf of its members. Solution in practice In March 2023, the framework became reality. The Center for NYC Neighborhoods, a housing non-profit, purchased parametric flood cover in partnership with the NYC Mayor's Office of Climate and Environmental Justice, the Environmental Defense Fund and SBP. When flooding in pilot neighbourhoods exceeds a preset threshold, measured through satellite imagery, ground sensors and even social media images, the insurer pays the Center directly. The Center then distributes emergency grants of up to $15,000 per household, up to $1.1 million in total, within days rather than months. The funding for the development and implementation of this cover in year one was provided by the US National Science Foundation. Impact / outcome Parametric cover pays emergency grants of up to $15,000 per household (up to $1.1m in total) within days. Next steps The pilot was designed as a blueprint for replication, but its success depends on trusted community institutions with established local networks - in this case a network of thirty housing counselling groups built during Hurricane Sandy recovery. A key challenge remains sustainable funding: NGO and municipal budgets are not structured to sustain insurance programs over time. Replication will therefore require funding mechanisms such as resilience levies, blended finance vehicles or embedding the premium cost within broader municipal resilience budgets. The playbook adds that the community-based model is relevant wherever individual insurance take-up is low, with civil society organizations playing a key role as trusted intermediaries between insurers and the communities they serve; communities, insurers and local governments could explore adaptations suited to their own institutions and regulatory settings, and initiatives such as the Insurance for Good Solutions Catalyst - which partners with communities, non-profits and the public sector on innovation in risk transfer - offer a starting point for identifying partners and existing solutions. Organizations involved Authoring: Marsh Actors: Center for NYC Neighborhoods; NYC Mayor's Office of Climate and Environmental Justice; Environmental Defense Fund; SBP; Guy Carpenter; Wharton Risk Center; US National Science Foundation Implementation partners Civil Society Organizations; Local Governments; Insurers; Regulators & Policymakers; Data Providers