Management Consulting
Aon
Full Credential Description
In 2023, the International Federation of Red Cross and Red Crescent Societies (IFRC) faced a significant challenge with its Disaster Relief Fund (DREF), which often became depleted due to high demand during disasters, particularly smaller-scale emergencies. To address this issue, the IFRC collaborated with Aon and various reinsurers to secure an innovative indemnity insurance policy, marking a first in the humanitarian sector. This policy was designed to provide a financial safety net, ensuring that the DREF could continue to support National Red Cross and Red Crescent Societies during critical times. By September 2024, the demands on the fund triggered the policy's first insurance payout, which amounted to up to 15 million Swiss francs. This timely financial support allowed the IFRC to maintain its operations and continue providing essential assistance during emergencies, effectively demonstrating the value of integrating insurance solutions into humanitarian efforts. The collaboration not only addressed immediate funding needs but also established a sustainable model for future disaster response, showcasing how tailored insurance solutions can enhance resilience in the humanitarian sector.