SEADRIF Insurance Company and the United Nations World Food Programme (WFP) have launched a parametric insurance policy in Lao PDR, providing up to $1.1 million in pre-arranged financing to support communities affected by extreme weather events and other natural hazards promptly.
The policy brings together government, humanitarian, and disaster risk financing partners in a “public-private collaboration” aimed at strengthening preparedness and long-term resilience to climate and disaster risks.
It reportedly mirrors the structure of the existing sovereign disaster insurance programme co-designed by Lao PDR and SEADRIF and launched in 2025.
SEADRIF explained that coverage spans multiple hazards, including floods, tropical cyclones, earthquakes and landslides, providing, as mentioned, up to $1.1 million in annual protection.
“Payouts are activated as disaster effects accumulate, starting when at least 200,000 people are affected and scaling up as impacts increase. WFP subscribed to this policy with funding from the Global Shield Financing Facility (GSFF),” the firm added.
Mr Vongkham Phanthanouvong, Director-General of the Social Welfare Department, Ministry of Labor and Social Welfare, Lao PDR, commented, “The SEADRIF parametric insurance policy represents an important step in strengthening our national systems to prepare for emergencies and better protect vulnerable communities.
“By working with WFP, we can plan more effectively and ensure timely, predictable support for people impacted by climate-related shocks. This collaboration demonstrates our shared commitment and strong partnership to building resilience and safeguarding livelihoods across Lao PDR.”
Marc-André Prost, WFP Laos Representative and Country Director, said, “This SEADRIF parametric insurance policy shows how innovative disaster risk financing can reach the most vulnerable households while also strengthening national shock‑responsive systems.
“Through this policy and resulting partnerships, WFP can ensure it has the resources required to deliver rapid, predictable, people‑centred support to communities affected by climate‑related shocks in coordination with the Ministry of Labor and Social Welfare.”
Benedikt Signer, CEO of the SEADRIF Insurance Company, added, “This policy extends financial protection directly to households—the people most exposed when disasters hit. It builds on the sovereign programme we co-designed with Lao PDR and demonstrates what is possible when government, humanitarian, and risk finance actors work towards a shared vision for resilience. We see this as a model for the region.”
