Preventive measures seek to avert deprivation, and deal directly with poverty alleviation. They include social insurance for ‘economically vulnerable groups’ – people who have fallen or might fall into poverty, and may need support to help them manage their livelihood shocks. This is similar to ‘social safety nets’. Social insurance programmes refer to formalised systems of pensions, health insurance, maternity and unemployment benefits, often with tripartite financing between employers, employees and the state. They also include informal mechanisms, such as savings clubs and funeral societies.
Strategies of risk diversification – such as crop or income diversification – are also considered as preventive measures. More recently new forms of preventive measures in relation to climate change adaptation and/or disaster risk reduction are emerging such as crop and weather insurance and health insurance to protect health and livelihood assets (e.g. livestock).