What are we funding?
GRANT AMOUNT | ENDORSEMENT DATE | ACTIVITIES | INSTRUMENTS SUPPORTED | WB PROJECT |
US$3 million | October 2023 | Covering the premium needed to renew Lao PDR’s flood insurance policy from the Southeast Asia Disaster Risk Insurance Facility (SEADRIF). | Macro/sovereign-level parametric insurance product (renewal) | Lao PDR: Improved Access to Disaster Risk Financing (P505224) |
- Lao PDR’s flood insurance policy was the SEADRIF Insurance Company’s first product and was reinsured to international reinsurance markets. The insurance policy comprised two parts, the first of which was a parametric insurance product that triggered based on the number of people affected by floods of more than 25cm depth. A second finite insurance component provided financing for costs resulting from events that did not trigger the parametric component.
- In FY24, GSFF Steering Committee members endorsed a US$3 million GSFF grant that will cover the premium needed to renew Lao PDR’s flood insurance policy from the Southeast Asia Disaster Risk Insurance Facility (SEADRIF).
- The original policy offered approximately US$30 million in coverage and, to date, has provided the government with US$4.5 in payouts, including US$3 million in the aftermath of the devastating cyclone Yagi in September 2024.
- Award of the GSFF grant is contingent upon approval of the full grant proposal, as part of the World Bank’s project approval process