Southeast Asia Disaster Risk and Insurance Facility (SEADRIF)
SEADRIF is the first regional catastrophe risk facility established in Asia by ASEAN member states. It will provide ex-ante climate and disaster risk and insurance financing solutions for these countries. SEADRIF will increase insurance cover and boost regional disaster resilience in Asia by providing participating countries with climate and disaster risk financing solutions.
What It Is
Incorporated and domiciled in Singapore, the SEADRIF insurance company was officially launched and licensed as a general insurer in October 2019.
It is supported by the World Bank and in partnership with Japan. It will provide ex-ante climate and disaster risk and insurance financing solutions for these countries. Such disaster risk solutions will facilitate immediate liquidity financing so that countries can receive help promptly. These solutions will also reduce disruptions to national budgets and reliance on humanitarian assistance which can take time or is uncertain.
Singapore provides financial support for the facility and will bring together public and private sector to provide technical capacity building, reinsurance capacity, and structuring and modelling support.
Its first product is an insurance product covering flood risk to provide immediate financing in the unfortunate event of a flood disaster.
Potential to expand to other ASEAN countries, other perils, and other disaster risk financing instruments such as insurance-linked securities.