Gallagher Re structures and places $16m multi-peril parametric policy for SEADRIF and Lao PDR

Reinsurance broker Gallagher Re, on behalf of the Southeast Asia Disaster Risk Insurance Facility (SEADRIF Insurance Company), has structured and placed a re/insurance programme for the government of Lao PDR.

The two-year policy expands the original 2021 flood-only placement to include additional perils such as typhoons, earthquakes, and landslides. It was established on May 3rd, 2025 and provides up to $16 million in aggregate protection.

The policy’s payout triggering mechanism is based on actual, reported loss information aggregated at the national level, making it one of the first, globally, to use a government-reported impact-based trigger, reports the broker.

The parametric structure is triggered by the number of people affected by a covered peril, which the established domestic agency, the National Disaster Management Office (NDMO), independently reports.

The reports are typically available within days after an event, and their use as a parametric trigger for financial response is backed by advanced analytical work carried out by Gallagher Re.

According to the reinsurance broker, this new type of trigger was required because traditional hazard-based markers are “unable to fully capture the variety and complexity of flood and other catastrophe events in the region.”

The NDMO-based framework addresses the needs of SEADRIF and the government of Lao PDR for financial protection products which closely align with the observed impacts on livelihoods.

Gallagher Re believes that this product shows potential to be further scaled up to help reduce the protection gap in the region in the future.

Antoine Bavandi, Global Head of Public Sector, Parametric & Climate Resilience Solutions, Gallagher Re, commented, “Gallagher Re is proud to have collaborated with SEADRIF on renewing this groundbreaking product. This achievement was underpinned by comprehensive analytical work and close consultations with clients and markets.

“Our innovative parametric set-up further pushes the boundaries of disaster risk finance and represents a solution that is both simple and more reliable. It captures the complexities of extreme catastrophe events such as flooding whilst minimising basis risk. It shows great potential for replicability in flood-prone countries, and we look forward to further expanding it with SEADRIF in the region.”

Benedikt Signer, Executive Director, SEADRIF Insurance Company, added, “We appreciate the technical leadership of Gallagher Re in bringing this enhanced policy to reality. This milestone represents not only a significant achievement for SEADRIF but also an advancement in parametric insurance products.

“We are committed to serving all ASEAN member countries and making a meaningful impact to protect vulnerable populations and fostering sustainable development. We look forward to our continued partnership with Gallagher Re to expand our impact.”

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