Article 4.8 of the United Nations Framework Convention on Climate Change (UNFCCC) and Article 3.14 of the Kyoto Protocol call upon Parties to consider actions, including insurance, to meet the specific needs and concerns of developing countries arising from the adverse effects of climate change and/or the adverse impacts of the implementation of response measures. To date, there is little understanding or agreement within the climate community on the role that insurance and other risk-transfer mechanisms can play in implementing these Articles. This paper addresses this role by discussing opportunities and obstacles for the climate negotiation regime to support insurance mechanisms for weather-related extremes in disaster-prone countries.