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.”