The Insurance Development Forum (IDF) has launched a $9.25m macroinsurance policy for Syria that will trigger a payout in the event of a drought in strategic food production areas, designed to support the World Food Programme's (WFP) operations in one of the world's most vulnerable regions.
In a statement, the IDF describes the move as a “significant milestone in climate risk insurance”.
This innovative macroinsurance policy, developed with Swiss Re, Hiscox and Howden through the IDF Sovereign and Humanitarian Solutions Working Group, in collaboration with Humanity Insured, with funding from the World Bank’s Global Shield Financing Facility, the UK Foreign, Commonwealth & Development Office (FCDO), and the German Federal Ministry for Economic Cooperation and Development (BMZ), provides a crucial layer of financial protection for communities in Syria.
The policy is designed to activate a payout if a drought occurs in key food-producing regions, allowing WFP to swiftly deliver up to $9.25m in aid to vulnerable communities, helping to protect their food security and sustain development progress.
The IDF is an industry-led public-private partnership bringing together insurance industry leaders, government officials and international organisations.