Hashtag
Men's Weekly

2024 Triggers First-Ever Insurance Payout for Disaster Fund

NEW YORK, US/GENEVA, SWITZERLAND - Media OutReach Newswire - 21 November 2024 - For the first time, an insurance payout has been triggered by the International Federation of Red Cross and Red Crescent Societies' Disaster Response Emergency Fund ('IFRC-DREF'), as demands for disaster relief surpassed its 'deductible' threshold.



A Bangladesh Red Crescent volunteer helps a lady away from her flooded home following Cyclone Remal. The response was part funded through an IFRC-DREF allocation Photo: BRCS
A Bangladesh Red Crescent volunteer helps a lady away from her flooded home following Cyclone Remal. The response was part funded through an IFRC-DREF allocation
Photo: BRCS

The IFRC-DREF is a vital fund that provides immediate funding for National Red Cross and Red Crescent Societies when disasters strike, especially for smaller-scale emergencies that may not attract global attention. Previously, the fund could run dry before year-end, prompting the IFRC to secure a groundbreaking — and humanitarian-sector first — indemnity insurance policy with Aon and reinsurers.

Since the start of 2023, and for an annual premium of CHF3m, the IFRC-DREF 'pot' has been insured on an indemnity basis. A potential payout of up to CHF15m is available if, or when, demands on the IFRC-DREF fund because of natural hazard-associated disasters hit a certain threshold — a 'deductible' set at CHF33m in one calendar year. For the rest of the calendar year, further demands on the IFRC-DREF for natural hazard disasters are covered by the insurance payout, up to that total maximum of CHF15m.

In 2023, the threshold was not reached so the policy did not pay out. But in 2024 it has been, with allocations to respond to Super Typhoon Yagi in Asia last week tipping IFRC-DREF spend over the insurance trigger threshold. Overall, there have been almost 100 separate IFRC-DREF allocations in 2024; combined those to respond to the impacts of eligible natural hazards have exceeded CHF 33m. When National Red Cross and Red Crescent Societies make further requests of the fund in September, October, November or December, allocations to respond to natural hazard disasters will be paid for by the commercial insurers, up to that CHF15m cap.

The IFRC's Under Secretary General for Global Relations and Humanitarian Diplomacy, Nena Stoiljkovic, announced the insurance payout at an event at the United Nations General Assembly in New York on Wednesday.

Ahead of it, Ms Stoiljkovic said:

"The triggering of the IFRC-DREF insurance policy is a significant moment. For the first time ever a single, worldwide, commercial indemnity insurance policy will pay the emergency humanitarian costs of disasters. The scale of the needs caused by 2024's disasters is sobering. But the fact the insurance is helping with the burden is good news and proof that there are innovative finance solutions that we hope to grow in coming years."

The IFRC has plans to grow its IFRC-DREF insurance, to widen coverage beyond disasters caused by natural hazards — to epidemics and anticipatory action, for example. It hopes grant donors will see the added value of contributing to the IFRC-DREF fund if their humanitarian contributions could potentially be multiplied in particularly calamitous years.

Notes to journalists

In 2024, IFRC-DREF allocations so far have been paid, among others to:
  • Maldives Red Crescent to help deal with a Filariasis outbreak in January (CHF 299,986)
  • Chile Red Cross to help deal with wildfires in February (CHF 496,982)
  • Eswatini Red Cross to help with its drought response in March (CHF 546,683)
  • Iraqi Red Crescent to help with it deal with Flash Floods in April (CHF 499,900)
  • Honduran Red Cross to help it deal with a hospital fire in May (CHF 336,394)
  • Armenia Red Cross to help its response to floods in June (CHF 499,759)
  • Venezuelan Red Cross in the aftermath of Hurricane Beryl in July (CHF 270,049)
  • Philippines Red Cross after floods in August (CHF 738,170)
  • Cameroon Red Cross after floods in September (CHF 421,471)

The single largest allocation so far in 2024 was to the Sudanese Red Crescent after floods in September (CHF 943,271); the single 'smallest' allocation was the Red Cross of Equatorial Guinea after a shipwreck in July (CHF 24,962).

  • More data is available by searching 'DREF' under 'Appeal Type' at the 'IFRC's Go Platform'
  • 1 CHF = 1.19 USD
  • IFRC-DREF insurance is co-funded by InsuResilience Solutions Fund (ISF) to support project preparatory work, development and refinement of the insurance product as well as premium funding.
  • IFRC-DREF insurance is also made possible by generous support in paying the premium, particularly from the British Red Cross, the Danish Red Cross and the British government (FCDO).
  • IFRC-DREF has provided rapid and efficient funding to local Red Cross and Red Crescent Societies before and after disasters strike since 1979. However, with the increasing frequency and intensity of disasters, particularly due to climate change, the demand for humanitarian assistance continues to grow.
  • More information on IFRC-DREF insurance can be found here: IFRC-DREF Insurance

For more information, for interviews, for quotes from IFRC-DREF partners or for video of IFRC and Red Cross Red Crescent responses to disasters contact media@ifrc.org

Hashtag: #Aon #IFRC

The issuer is solely responsible for the content of this announcement.

Business News

Highbrow Unveils Its New Beauty Salon at The Adelphi

SINGAPORE - Media OutReach Newswire - 27 June 2025 - HighBrow, one of Singapore’s most trusted names in brow, lash, and nail care, is thrilled to announce the launch of its new beauty salon at The Ad...

Hashtag.net.au - avatar Hashtag.net.au

Cyberport 5 as Hong Kong's New I&T Landmark

Driving Emerging Strategic Industries Development Heralding a New Chapter in Integration of I&T and the Community HONG KONG SAR - Media OutReach Newswire - 27 June 2025 - The Cyberport 5 b...

Hashtag.net.au - avatar Hashtag.net.au

VinFast signs dealer financing cooperation agreement with BCA

JAKARTA, INDONESIA - Media OutReach Newswire - 27 June 2025 - VinFast has officially entered into a pivotal financial partnership with PT Bank Central Asia Tbk. (BCA), one of Indonesia's leading priv...

Hashtag.net.au - avatar Hashtag.net.au

Food Expo PRO and Hong Kong International Tea Fair Return in August with New Coffee Zone and Expanded Halal Sector

HONG KONG SAR - Media OutReach Newswire - 27 June 2025 - Organised by the Hong Kong Trade Development Council (HKTDC), the Food Expo PRO and Hong Kong International Tea Fair will be staged concurrent...

Hashtag.net.au - avatar Hashtag.net.au

Food Expo PRO and Hong Kong International Tea Fair: One-Stop F&B Platform Returns in August

Spotlighting Food Science & Tech HONG KONG SAR - Media OutReach Newswire - 27 June 2025 - Organised by the Hong Kong Trade Development Council (HKTDC), the Food Expo PRO and Hong Kong Internation...

Hashtag.net.au - avatar Hashtag.net.au

The best CFD broker 2025': Octa receives yet another award

KUALA LUMPUR, MALAYSIA - Media OutReach Newswire - 27 June 2025 - Octa, a globally regulated and trusted broker since 2011, was recently named 'The best CFD broker 2025' by the AllForexRating.com po...

Hashtag.net.au - avatar Hashtag.net.au

Health & Wellness

Telehealth Could be the Catalyst for Better Heart Health in Australia

Hashtag.net.au - avatar Hashtag.net.au

Image by stockking on Freepik Heart disease is one of the leading causes of death in Australia despite decades of advancements in medicine and health education campaigns. More than 400 Australians ...

Disability Care in Melbourne: What Families Need to Know in 2025

Hashtag.net.au - avatar Hashtag.net.au

If you’re supporting a loved one with a disability in Melbourne, you’ll know how important it is to find the right care—and how overwhelming it can be to navigate the system. With the National Disab...

Online Medical Certificate Services: Essential Features to Look Out For

Hashtag.net.au - avatar Hashtag.net.au

"Discover top online medical certificate services! Essential features to look for to get trusted and efficient results." Choosing high-quality services is essential for ensuring reliable, efficient, ...