Gallagher Re developing drought catastrophe bond
Dorra Berraies, senior adviser for climate resilience at the broker, says the drought bond is one of the many projects her team is working on with various governments and public sector organisations
Insurance solutions are becoming a more important part of climate resilience and disaster response preparations as event frequency increases, Gallagher Re’s Dorr Berraies tells the Insurance Day podcast
BROKER Gallagher Re is working on a what it claims is the first drought catastrophe bond.
Speaking on the Insurance Day podcast, Dorra Berraies, senior advisor for climate resilience, says the new drought catastrophe bond will be the latest in a series or products created for humanitarian organisations, including a flash flood product for Morocco that relies on flood sensors and satellite imaging, and a reinsurance solution developed for the World Food Programme.
The bond is part of the work of the reinsurance broker’s Public Sector and Climate Resilience Solutions division, which works with governments, NGOs and humanitarian organisations to develop insurance solutions to support disaster relief and climate resilience.
Berraies says insurance solutions are becoming a more important part of climate resilience and disaster response preparations as event frequency increases and the availability of other forms of aid lessens.
“This change [is] driven by the higher frequency of disaster events, especially related to climate change, and the geopolitical context that there’s less aid that is available,” Berraies says.
“So different countries need to put in place a response, and value this partnership with us as insurance markets, in order to put in place the best response,” she adds.
On the podcast, Berraies also discusses why the parametric product that paid out after the 2023 Morocco earthquake was so successful, how governments and public sector organisations are beginning to think differently about climate resilience and how the insurance sector is working with these organisations to help provide pre-emptive responses for natural catastrophes.
