The United Nations has launched a first-of-its-kind insurance programme that could unlock up to $40 million in additional funding to help protect people before disasters strike, with Gallagher Re structuring and placing the coverage and Liberty Mutual acting as lead insurer.
The initiative works as a financial safety net, designed to reach people before they lose their homes, food or livelihoods when multiple disasters threaten simultaneously, putting exceptional pressure on available resources.
It is led by the UN Office for the Coordination of Humanitarian Affairs (OCHA), in partnership with the United Nations Children’s Fund (UNICEF) and the World Food Programme (WFP). The Centre for Disaster Protection provided independent technical advice.
OCHA will allocate money to help people when forecasts warn of an approaching disaster. If demand for that funding exceeds an agreed threshold, insurers will provide additional resources, allowing aid workers to reach more people in time to save lives.
Tom Fletcher, UN Emergency Relief Coordinator, said, “Disasters don’t wait for us to get our act together. We need to be ready before they strike.
“This insurance gives us another line of defence against disaster so we can protect more people before the worst hits and make every dollar work harder.”
This early, anticipatory funding can make a significant difference for families in the path of a disaster, helping them prepare and protect themselves rather than having to rely on assistance after the event.
OCHA noted that money arriving early gives people choices – to buy food, protect what they own or move to safety.
OCHA’s $150 million anticipatory action portfolio covers more than five million people. Insurance helps protect that commitment when several disasters threaten at once. By capping the amount OCHA needs for exceptionally difficult years, it can also help extend early assistance to more communities.
UNICEF has taken out parallel cover for its contribution to the same work. The programme is designed so that more agencies and partners can join over time.
