This paper examines whether insurance can credibly address the shortcomings of existing reversal mechanisms. Drawing on lessons from property insurance against wildfire risk and the World Bank Group’s CDM-era products, it identifies the key design features and limitations that will determine whether insurance can meaningfully contribute to managing reversal risk. The paper also reflects insights from the CMM-WG workshop held on 12 March 2026, which convened insurers, programme experts, and policymakers to debate the path forward.