17 February, 2025: The Insurance Development Forum (IDF) is pleased to highlight a significant milestone in climate risk insurance with the launch of a US$9.25 million 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.
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 US$9.25 million in aid to vulnerable communities, helping to protect their food security and sustain development progress.
The idea for this groundbreaking product was initiated during the IDF Summit 2023, when the IDF Sovereign and Humanitarian Solutions Working Group convened to discuss the pressing need for financial tools that could address the impacts of climate change in conflict-affected regions. This collaboration has come to fruition, delivering a product that will significantly enhance climate resilience in Syria, especially in light of the ongoing humanitarian challenges.
The climate risk insurance aims to provide critical prearranged finance for WFP’s operations, ensuring that vulnerable communities are better equipped to withstand the devastating effects of drought. With this insurance policy now active, WFP can respond quickly to protect food security and development gains, preventing vulnerable families from resorting to extreme coping strategies such as skipping meals, pulling children from school, or selling essential livestock.
In settings like Syria, where political instability and ongoing crises exacerbate the effects of climate shocks, this insurance is a vital tool for early action. By ensuring that funding is in place before the crisis hits, the policy supports proactive rather than reactive responses, helping to mitigate the worst impacts of climate change on the most vulnerable.
Climate risk insurance enables vulnerable people to cope with climate shocks – supporting smallholder farmers to absorb the effects of failed harvests, and governments and humanitarian agencies to launch well-coordinated and efficient responses. When integrated with other risk management strategies such as nature-based protection, communal savings schemes or social safety nets, insurance solutions offer important protection against potentially catastrophic events which can lead to a loss of livelihoods.
The Innovative Climate Risk Insurance for Syria is a significant step toward ensuring that vulnerable populations are protected against the devastating impacts of climate shocks, paving the way for future advancements in climate resilience and crisis protection across the globe.
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. 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.
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.”
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This innovative drought insurance product reflects the IDF’s advocacy for prearranged financing, aligned with the recommendations from the recently launched High-Level Panel on Closing the Crisis Protection Gap, which was supported by the IDF. The panel’s report, Crisis Protection 2.0: Future-Proofing Our World, underscores the urgent need to scale crisis finance, particularly in the least developed countries and small island developing states, to address the growing frequency and severity of climate-related shocks.
Implementation Update: IDF and World Bank Launch Knowledge Sharing Partnership
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About the Insurance Development Forum
The Insurance Development Forum (IDF) is an industry-led Public-Private Partnership bringing together insurance industry leaders, government officials and international organisations.
First announced at the UN Conference of the Parties (COP21) Paris Climate Summit in 2015, and officially launched by leaders of the United Nations, World Bank Group and insurance industry in 2016, the IDF looks to leverage the technologies, expertise and financial mechanisms native to the insurance industry to enable the world’s most disaster vulnerable governments, economies and populations to enhance risk understanding and build resilience.
About Howden
Howden is a leading global insurance intermediary group with employee ownership at its heart. Founded in 1994, we operate in 55 countries across Europe, Africa, Asia, the Middle East, Latin America, the USA, Australia and New Zealand, employing 20,000 people and handling US$42bn of premium on behalf of clients.
For further information, please visit: www.howdengroup.com
About Humanity Insured
Humanity Insured, set up with the backing of the insurance industry, is a registered charity in the UK (Charity Number:1209214), and a registered not-for-profit non-stock entity in the US. Humanity Insured uses private and philanthropic capital at scale to help people on the climate crisis frontline access and pay for new forms of insurance. It is making insurance accessible and effective for vulnerable communities, empowering them to build climate resilience through financial resilience, and helping them protect their futures.
For further information, please visit humanityinsured.org
About The Hiscox Group
Hiscox is a global specialist insurer, headquartered in Bermuda and listed on the London Stock Exchange (LSE:HSX). Our ambition is to be a respected specialist insurer with a diverse portfolio by product and geography. We believe that building balance between catastrophe-exposed business and less volatile local specialty business gives us opportunities for profitable growth throughout the insurance cycle.
The Hiscox Group employs over 3,000 people in 13 countries, and has customers worldwide. Through the retail businesses in the UK, Europe, Asia and the USA, we offer a range of specialist insurance products in commercial and personal lines. Internationally traded, bigger ticket business and reinsurance is underwritten through Hiscox London Market and Hiscox Re & ILS.
Our values define our business, with a focus on people, courage, ownership and integrity. We pride ourselves on being true to our word and our award-winning claims service is testament to that.
For further information, visit www.hiscoxgroup.com.
About the World Food Programme
The United Nations World Food Programme is the world’s largest humanitarian organization saving lives in emergencies and using food assistance to build a pathway to peace, stability and prosperity for people recovering from conflict, disasters and the impact of climate change.
For further information, visit: www.wfp.org
