This report presents a comprehensive assessment of disaster risk financing and insurance in Zanzibar, highlighting the increasing economic and social impacts of disasters such as floods, storms, marine accidents, and pandemics. It reveals a heavy reliance on unpredictable post-disaster funding and underscores the urgent need for proactive, well-coordinated financial strategies that include both risk retention and risk transfer mechanisms. The report provides actionable recommendations to strengthen Zanzibar’s disaster risk management through improved data systems, financial planning, insurance uptake, and institutional coordination—ultimately aiming to build resilience and protect livelihoods, infrastructure, and the national budget from future shocks.