SEADRIF Insurance Company and the United Nations World Food Program (WFP) have launched a parametric insurance policy in Lao People’s Democratic Republic, providing up to $1.1 million in pre-arranged financing to provide timely support to communities affected by extreme weather events and other natural disasters.
The policy brings together government, humanitarian and disaster risk financing partners in a “public-private partnership” aimed at strengthening preparedness and long-term resilience to climate and disaster risks.
It reportedly mirrors the structure of the existing sovereign disaster insurance scheme designed by Lao People’s Democratic Republic and SEADRIF and launched in 2025.
SEADRIF explains that its coverage covers multiple hazards, including floods, tropical cyclones, earthquakes and landslides, as mentioned above, providing protection of up to $1.1 million per year.
The company added: “Payments are initiated as the impact of the disaster accumulates, starting when at least 200,000 people are affected and scaling up as the impact increases. WFP agreed to this policy with funding from the Global Shield Financing Facility (GSFF).”
Mr. Vongkham Phanthanouvong, Director of the Social Welfare Department of the Ministry of Labor and Social Welfare of the Lao People’s Democratic Republic, commented: “The SEADRIF parametric insurance policy is an important step towards strengthening our national systems to respond to emergencies and better protect vulnerable communities.
“By partnering with WFP, we can plan more effectively and ensure timely, predictable support for people affected by climate-related shocks. This collaboration demonstrates our shared commitment and strong partnership to build resilience and secure livelihoods in Lao People’s Democratic Republic.”
Marc-André Prost, WFP Representative and Country Director for Laos, said: “This SEADRIF parametric insurance policy demonstrates how innovative disaster risk financing can reach the most vulnerable households while strengthening national response systems to shocks.
“Through this policy and resulting partnerships, WFP can ensure it has the resources it needs 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 SEADRIF Insurance Company, added: “This policy extends financial protection directly to households, those most affected when a disaster strikes. It builds on the sovereignty plan we co-designed with the Lao People’s Democratic Republic and demonstrates what is possible when government, humanitarian and risk finance actors work towards a shared vision of resilience. We see this as a model for the region.”