• Investing
  • Stock
  • Editor’s Pick
  • Economy
The Significant Deals
Editor's Pick

Multiple climate disasters trigger first ever Red Cross disaster insurance pay-out

by November 8, 2024
written by November 8, 2024

By Emma Farge

GENEVA (Reuters) – The world was hit by so many floods and landslides in 2024 that it triggered the aid sector’s first multi-disaster insurance pay-out, the Red Cross told Reuters, signalling both the scale of the problem and the need for new financing solutions.

The International Federation of the Red Cross and Red Crescent Societies (IFRC) said such indemnity insurance funds, which kick in when repeated disasters reach a minimum cost threshold, can protect relief budgets increasingly strained by frequent and severe climate-fuelled hazards.

The IFRC policy with insurance broker Aon (NYSE:AON) is the first of its kind for the aid sector. It was triggered in mid-September by the deadly Asian Typhoon Yagi, which tipped total disaster spending over the 33 million Swiss franc ($37.84 million) mark, and the fund has disbursed more than 7 million Swiss francs.

The money has so far helped 1.5 million disaster victims in the poorest countries, including those in flood-hit Nigeria or those displaced by a Nepal landslide, it said.

“This provides contingency funding when you have exceptional needs. We would not have been able to respond to those disasters we are responding to today without this,” Florent Del Pinto, head of the Disaster Response Emergency Fund, told Reuters in an interview.

“What’s worrying is that this year’s needs have been so unprecedented that we have hit the trigger set at a relatively high level.”

The organisation is seeking to raise close to 100 million Swiss francs for its 2025 disaster response budget in Geneva on Friday and will be asking donors to also contribute to the insurance premium.

The IFRC hopes this year’s pay-out will help quell any doubts from donors who have previously expressed scepticism about whether they (disaster insurance products) work or are ethical, Del Pinto said.

He said in future that the current maximum pay-out could form a bigger portion of total humanitarian spending. Already, he said that several other aid agencies have approached him for information with a view to setting up similar funds.

“We are in this situation in which humanitarian needs are growing almost exponentially while funding is stable so we need to explore innovative financing in order to address the funding gap and respond to human suffering,” he said.

($1 = 0.8722 Swiss francs)

This post appeared first on investing.com
0 comment
0
FacebookTwitterPinterestEmail

previous post
Buy US stocks as election to Inauguration Day is ‘a risk-on window of opportunity’
next post
Most Americans expect Trump to increase US debt, Reuters/Ipsos poll finds

You may also like

China central bank conducts 1.7 trln yuan of...

January 27, 2025

Fuji Media, rocked by sexual misconduct allegations, says...

January 27, 2025

ECB president fears loss of central bank independence

January 27, 2025

European tech shares tumble as China’s AI push...

January 27, 2025

Futures slip as investors eye China’s latest AI...

January 27, 2025

Markets may be repeating the mistake of 2019,...

January 27, 2025

How billionaire Caltagirone could influence Italy’s banking M&A...

January 27, 2025

How Italy’s MPS went from near collapse to...

January 27, 2025

Analysis-To weather Trump, emerging market investors look to...

January 27, 2025

Chinese AI startup DeepSeek overtakes ChatGPT on Apple...

January 27, 2025
Fill Out & Get More Relevant News








    Stay ahead of the market and unlock exclusive trading insights & timely news. We value your privacy - your information is secure, and you can unsubscribe anytime. Gain an edge with hand-picked trading opportunities, stay informed with market-moving updates, and learn from expert tips & strategies.

    Recent Posts

    • Divided Fed proposes rule to ease capital requirements for big Wall Street banks

      June 26, 2025
    • Women’s Tennis Association extends media rights deal with Tennis Channel through 2032

      June 26, 2025
    • Bumble shares jump 26% as dating company plans to axe 30% of workforce

      June 26, 2025
    • Small-business AI use is lagging, but one firm is channeling Sherlock Holmes and knocking out ‘grunt work’

      June 25, 2025

    Categories

    • Economy (245)
    • Editor's Pick (3,646)
    • Investing (534)
    • Stock (6,426)

    Latest News

    • Divided Fed proposes rule to ease capital requirements for big Wall Street banks
    • Women’s Tennis Association extends media rights deal with Tennis Channel through 2032

    Popular News

    • BOJ to raise rates by end-March, most analysts lean toward January hike- Reuters poll
    • U.S. Steel, Nippon allege Biden violated constitution in lawsuit over blocked deal

    About The Significant deals

    • Privacy Policy
    • Terms & Conditions

    Copyright © 2025 thesignificantdeals.com | All Rights Reserved

    The Significant Deals
    • Investing
    • Stock
    • Editor’s Pick
    • Economy