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One big thing: In September, the International Federation of the Red Cross and Red Crescent Societies’ (IFRC) Disaster Response Emergency Fund (DREF)  had its first insurance-backed payout, providing crucial funding to communities in need. Aon worked with the IFRC on the insurance policy — which helps to ensure the fund won’t run dry by the end of the year.

• Aid for communities impacted by devastating super typhoon Yagi in Asia tipped the IFRC-DREF spend over the insurance trigger threshold. Read the press release.
  • By the numbers: IFRC-DREF has already made 100 funding allocations in 2024 to respond to the impacts of natural disasters.
  • Looking ahead: When the IFRC makes requests of the fund through the end of 2024, allocations will be paid for by the commercial insurers, up to approximately $17.5 million USD.
• Aon’s President, Eric Andersen, said: “Due to climate and other risks, disasters including floods in Algeria, typhoons in Vietnam and wildfires in Bolivia have left 43 million people impacted in September alone. At Aon, we believe funding should not, and cannot, stop emergency aid. The IFRC-DREF insurance policy expands the impact and scale of emergency aid by the IFRC and is proof that the private sector can do more to support humanitarian organizations and our world's most vulnerable populations."
• Nena Stoiljkovic, undersecretary general for global relations and humanitarian diplomacy for IRFC, 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.”
• Read more in Actuarial Post, Commercial Risk, Global Reinsurance, Insurance Business, Insurance Day, Insurance Innovation Reporter and Reinsurance News.  
• Learn more about Aon’s work with the IFRC here.