The International Federation of Red Cross and Red Crescent Societies (IFRC), the world’s largest humanitarian network, acts before, during, and after disasters and health emergencies to meet the needs and improve the lives of vulnerable people. The IFRC Disaster Response Emergency Fund (IFRC-DREF) is an efficient, fast, transparent, and localized way of getting funds directly to humanitarian actors. To enhance IFRC-DREF’s ability to respond to natural disaster events, the InsuResilience Solutions Fund (ISF) co-funded the development and implementation of a groundbreaking climate risk transfer solution.
This innovative climate risk finance solution helps IFRC’s member National Societies to access reliable international, short-term emergency funds necessary to support affected communities in case funding needs after natural disasters surpass the resources available. Following the successful development and launch of the 3-year insurance policy in 2024, ISF is now extending its support with further premium support.
This extension aims to ensure IFRC-DREF’s target level of available funds to respond effectively to climate disasters. The premium support will help ensure that emergency response funds are available in a timely and reliable manner, even during periods of excessive climate disasters.
Moreover, ISF´s premium support will help to demonstrate the effectiveness of this innovative insurance solution in achieving its objectives and thereby supporting the IFRC in mobilizing additional premium funding and securing pledges from other donors by 2025.
Eugen Doce, co-head of the InsuResilience Solutions Fund, said:
“Building on the successful development and introduction of the insurance mechanism, this extension of the IFRC’s climate risk insurance program marks a significant step forward enhancing the IFRC-DREF’s capacity to respond to natural disasters. ISF’s premium subsidy support is crucial in ensuring the sustainability and scalability of this innovative insurance product. The ISF is proud to continue supporting this innovative initiative, which exemplifies the synergy between development and humanitarian efforts to improve global resilience against climate-related hazards.”
Nena Stoiljkovic, IFRC’s Under Secretary General, Global Relations, Humanitarian Diplomacy and Digitalization said:
At IFRC, we believe in the necessity to scale up our response to disasters by developing innovative ways to raise funding for IFRC-DREF. We are grateful for the support of ISF both for the development of the IFRC-DREF Insurance project for climate-related disasters as well as for its support for the premium payment. Larger IFRC-DREF as a result of the insurance project will make a huge difference in providing assistance to many more people in need all around the world.
Managed by Frankfurt School
GRMA hosted by ISF
