Hiscox, Howden, Swiss Re and Insurance Development Forum launch $9.25m Syrian drought partnership

The Insurance Development Forum (IDF) has highlighted “a significant milestone” in climate risk insurance with the launch of a new $9.25m “macroinsurance policy” for Syria.

The policy 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.

It was 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).

“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,” said Ivo Menzinger, managing director of public sector business at Swiss Re, and chair of the IDF’s operating committee.

The partnership aims to provide “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 $9.25m in aid to vulnerable communities, helping to protect food security and sustain development progress.

The idea 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.

The climate risk insurance aims to provide critical prearranged finance for WFP’s operations, so vulnerable communities are better equipped to withstand the effects of drought.

Through the policy, WFP can respond faster to protect food security and development gains, preventing vulnerable families from resorting to extreme coping strategies, the scheme’s backers said, 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, the IDF emphasised.

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”.

“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,” Menzinger said.

“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.”

He 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.”