The macroinsurance policy is designed to trigger automatic payouts when drought conditions are detected in key food-producing regions, ensuring rapid aid deployment to affected communities. The policy was developed 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).
The concept for this insurance solution was first discussed at the IDF Summit 2023, where global leaders addressed the need for financial tools to mitigate climate risks in conflict-affected regions. With Syria facing ongoing political instability and economic hardship, this insurance product is expected to improve food security by allowing WFP to act before a crisis escalates.
By securing prearranged financing, the policy aims to prevent families from resorting to extreme survival measures, such as skipping meals, withdrawing children from school, or selling essential livestock. It is also part of a broader strategy to integrate climate risk insurance with other resilience-building measures, including nature-based solutions, communal savings programs, and social safety nets.
The launch of this climate risk insurance marks a significant milestone in global efforts to address climate-driven humanitarian crises. It also sets a new precedent for innovative financial mechanisms that help vulnerable populations withstand climate shocks, ensuring long-term stability and resilience in high-risk regions.
Ivo Menzinger, Managing Director of Public Sector Business at Swiss Re, and Chair of the Insurance Development Forum Operating Committee, said: “The launch of this innovative climate risk insurance policy for Syria represents a landmark achievement in delivering prearranged insurance finance to support vulnerable communities facing the impacts of climate change.”
He continued: “This is a testament to the collective efforts of the insurance industry – in this instance Swiss Re, Hiscox and Howden – working with development partners, the public sector and donors to develop practical solutions that enhance resilience in some of the world’s most fragile regions. By ensuring rapid financial support when drought occurs, this policy demonstrates the power of collaboration in closing the crisis protection gap and strengthening food security.”
Menzinger added: “Effective climate risk insurance equips vulnerable populations with the resources to manage climate shocks – helping smallholder farmers recover from failed harvests and enabling governments and humanitarian agencies to mount timely and well-coordinated responses. When combined with broader risk management measures, such as social safety nets and community-led resilience initiatives, insurance plays a critical role in safeguarding livelihoods and ensuring long-term stability.”
