IDF unveils $9.25m macroinsurance policy for drought in Syria

The Insurance Development Forum (IDF) has unveiled the launch of a $9.25 million macroinsurance policy for Syria that will trigger a payout in the event of a drought in strategic food production areas.

According to the IDF, this macroinsurance policy is designed to support the World Food Programme’s (WFP) operations in Syria, allowing it to deliver monetary aid to vulnerable communities, helping to protect their food security and sustain development progress.

The product was reportedly developed with Swiss Re, Hiscox, and Howden through the IDF Sovereign and Humanitarian Solutions Working Group in collaboration with Humanity Insured, and funded by 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 product was reportedly 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.

“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,” the IDF explained.

Ivo Menzinger, Managing Director of Public Sector Business at Swiss Re, and Chair of the Insurance Development Forum Operating Committee, commented, “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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