Laos policy now includes typhoon, earthquake, and landslide risks, with up to $16m in aggregate protection.
Gallagher Re has structured and placed a multi-peril parametric insurance programme on behalf of SEADRIF Insurance Company, providing financial protection for the government of Lao PDR against a range of natural catastrophes.
The new two-year policy, which incepted on 3 May 2025, expands upon a previous flood-only cover introduced in 2021. It now includes typhoon, earthquake, and landslide risks, with up to $16m in aggregate protection.
The product features a pioneering payout trigger mechanism based on the number of people affected by disaster events, as reported by the National Disaster Management Office (NDMO) in Laos.
The structure replaces traditional hazard-based triggers with a loss-based approach grounded in official national data — a method designed to better reflect the real-world impact of complex disasters.
Antoine Bavandi, global head of public sector, parametric and climate resilience solutions at Gallagher Re, said: “Gallagher Re is proud to have collaborated with SEADRIF on renewing this groundbreaking product.
“Our innovative parametric set-up further pushes the boundaries of disaster risk finance and represents a solution that is both simple and more reliable. It captures the complexities of extreme catastrophe events such as flooding whilst minimizing basis risk. It shows great potential for replicability in flood-prone countries and we look forward to further expanding it with SEADRIF in the region.”
Reports from the NDMO are typically available within days of an event, allowing for faster and better targeted disbursements.
The approach is designed to align closely with the actual impact on livelihoods and to address the protection needs of governments facing high disaster exposure.
Benedikt Signer, executive director of SEADRIF Insurance Company, said: “We appreciate the technical leadership of Gallagher Re in bringing this enhanced policy to reality.
“This milestone represents not only a significant achievement for SEADRIF but also an advancement in parametric insurance products. We are committed to serving all ASEAN member countries and making a meaningful impact to protect vulnerable populations and fostering sustainable development. We look forward to our continued partnership with Gallagher Re to expand our impact.”
No comments yet