SEADRIF and UN WFP launch $1.1m disaster risk insurance for Laos

WFP secured funding for the policy through the Global Shield Financing Facility.

The SEADRIF Insurance Company and the United Nations World Food Programme (WFP) has introduced an impact-based disaster risk insurance policy in Lao People's Democratic Republic (LPDR or Laos).

The policy provides pre-arranged financing of up to $1.1m to support communities affected by extreme weather and other natural hazards.

Coverage spans multiple hazards, including floods, tropical cyclones, earthquakes and landslides. Payouts are activated as disaster effects accumulate, starting when at least 200,000 people are affected and scaling up as impacts increase.

WFP subscribed to this policy with funding from the Global Shield Financing Facility (GSFF).

The policy mirrors the structure of the existing sovereign disaster insurance programme co-designed by Lao PDR and SEADRIF and launched in 2025.

Climate shocks are increasing the frequency and severity of climate and disaster risk in Lao PDR. Rural communities are hit hardest, as the communities’ livelihoods are closely tied to agriculture and food insecurity is a persistent challenge.