The World Bank says insurance costs are likely to rise as weather-related claims increase, and mitigation is needed to stop insurers abandoning markets as risk grows too difficult to price.

Climate change could also stymie efforts to reduce poverty, the bank says in its latest report on building resilience.

“Unless we help vulnerable and poor nations, regions and cities prepare and adapt to current and future climate and disaster risks, we could see decades of development progress rolled back.”

It cites a Munich Re report that weather-related losses and damage have risen from about $US50 billion ($53.2 billion) annually in the 1980s to more than $US200 million a year ($212.85 million) last decade.

The bank calls for climate and disaster resilience to be incorporated into development processes.

Regional pooling among groups of small countries with similar risk profiles can save money and transfer risk, it says.

The Caribbean Catastrophe Risk Insurance Facility buys cover for 16 members at 54-59% cheaper than an individual country would achieve in the reinsurance market. It can pay out within two weeks using a predefined hurricane strength or earthquake magnitude as a trigger.

The bank has a pilot project in the Pacific that it estimates saves 50% compared with countries buying individual policies.