UK-based humanitarian organisation Start Network, in collaboration with Aon, has unveiled a reinsurance product designed to support Start Ready, a global fund for early action in climate crises.
The mechanism works alongside financial modelling tools that allow Start Ready to allocate resources efficiently across a portfolio of anticipatory action systems.
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These systems provide funding in advance of climate-related events, based on probabilistic assessments.
In scenarios where multiple events occur and the risk pool is exhausted, a reinsurance component is triggered for continued fund disbursement, maintaining timely support for affected communities.
Furthermore, the reinsurance product facilitates “predictable and flexible” disaster risk financing, enhancing Start Ready’s ability to safeguard people in more countries.
It insures anticipatory systems on aggregate loss, safeguarding pooled funds and maintaining support through multiple simultaneous crises.
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By GlobalDataAon Public Private Partnerships head Emma Karhan said: “With this reinsurance layer, Start Ready can extend its reach and impact, ensuring that more communities receive the life-saving support they need in the face of climate crises.”
Start Network Crisis Anticipation and Risk Finance head Anna Farina said: “We are delighted to collaborate with Aon to design and implement an innovative and groundbreaking mechanism that enhances protection for vulnerable communities across our nine countries of operation.
“Thanks to this insurance layer, Start Ready funds can be stretched even further enabling more people to be protected and more resources to be disbursed ahead of specific climate events.”
Start Ready has already supported nearly one million people through its first three Risk Pools. With the fourth pool now active, the fund is set to protect an additional 800,000 individuals from climate risks, supported by 12 donors.
Last month, Aon expanded its partnership with Moody’s Insurance Solutions. The collaboration, previously focused on casualty reinsurance, now extends to commercial risk.
