Rome, SANA-The United Nations World Food Programme (WFP) has received $7.9 million in payouts under a drought insurance policy developed in collaboration with insurance providers Howden, Hiscox, and Swiss Re.
Mathieu Dubreuil, Lead Advisor for Climate & Disaster Risk Financing and Insurance at WFP told Reuters’ insurance-focused news service The Insurer, that “this is a once-in-50-years event.” He explained that activation of the policy was based on conditions in three regions of Syria—two of which met the full criteria for 100% compensation, while the third qualified for 80%.
Dubreuil added, that the concept for the policy originated when WFP sought to expand insurance coverage to fragile countries not included in the four existing regional risk pools.
Gareth Davies, Head of Parametric Solutions at Howden, emphasized that the speed of payout is a key factor in demonstrating the value of this type of insurance coverage.
Etemad/Manar Salamah
