humanitarian insurance-linked securities

The Start Network, an international network of non-governmental humanitarian organisations, is partnering with the Insurance Development Forum (IDF) on the creation of a new financial service for the humanitarian sector, with parametric triggers and risk pooling at its heart.

After having played a role in the issuance of the world’s first catastrophe bond for volcano related disasters, the Howden insurance and reinsurance broking group wants to expand the use of catastrophe bonds to cover humanitarian funding and other types of disaster relief.

The Red Cross, working alongside insurance-linked securities (ILS) risk securitisation facilitator and risk transfer consultancy Replexus Group, is developing a solution to promote nature-based solutions to disaster risk, financed partly through the use of catastrophe bonds, as well as other humanitarian and development scenarios.