In 2023, together with Aon and the Centre for Disaster Protection, The Lloyd’s Disaster Risk Facility launched a new insurance mechanism to support the International Federation of Red Cross and Red Crescent Societies’ (IFRC) Disaster Response Emergency Fund (DREF).
The DREF releases finance rapidly and directly, both before and immediately after a crisis hits.
As both the scale of humanitarian need and the impacts of climate-linked disasters grow, the DREF must remain able to respond where and when it is needed, to meet the needs of today while standing ready for the crises of tomorrow.
The groundbreaking risk transfer mechanisms means that a pay-out is triggered at the point when expenditure on disaster responses from the DREF in any given year reaches a pre-agreed level, unlocking up to 20 million Swiss Francs in further support and enabling the IFRC to reach an estimated six million additional vulnerable people each year.
This innovative response tool builds on the work of our Disaster Risk Facility and shows what our market can do when we collaborate with our partners in across the public, private and humanitarian sectors to close global protection gaps and mitigate the human and financial impacts of natural catastrophes.
Find out more about the Disaster Response Emergency Fund (DREF)