Insurance Development Forum (IDF), a global initiative led by the insurance industry to enhance resilience against climate risks, has launched a $9.25m climate risk insurance policy aimed at protecting vulnerable communities in Syria from the devastating impacts of drought.
The policy was created to provide financial relief and ensure rapid aid deployment by supporting the World Food Programme (WFP) in responding to food insecurity caused by extreme climate events, according to InsurTech Insights.
With Syria’s ongoing political instability and economic hardships, this insurance solution is designed to mitigate climate risks before they escalate into full-blown humanitarian crises.
The IDF, which brings together insurers, reinsurers, brokers, and other industry stakeholders, focuses on using financial mechanisms to manage climate-driven threats, particularly in regions facing social and economic challenges.
The new macroinsurance policy is a direct outcome of this mission, reflecting the IDF’s commitment to global resilience-building.
The climate risk insurance policy triggers automatic payouts when drought conditions are detected in key food-producing areas of Syria.
This ensures that financial assistance reaches affected communities swiftly, preventing families from resorting to extreme coping measures such as skipping meals, withdrawing children from school, or selling essential livestock.
This innovative insurance product was developed in collaboration with Humanity Insured and received 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 was first introduced during the IDF Summit 2023, where global leaders emphasised the need for financial tools to support climate resilience in conflict-affected regions.
Beyond immediate financial relief, the policy is part of a broader strategy that integrates climate risk insurance with other resilience-building measures. These include nature-based solutions, communal savings programmes, and social safety nets, creating a more comprehensive approach to supporting vulnerable populations.
The launch of this policy is seen as a significant milestone in global efforts to address climate-driven humanitarian crises.
It sets a new standard for innovative financial mechanisms that help at-risk communities withstand climate shocks, ensuring long-term stability and food security.
Swiss Re managing director of public sector business and chair of the Insurance Development Forum Operating Committee Ivo Menzinger 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.”
