SEADRIF Insurance has made a payout of $2m to the ministry of finance of Lao PDR under the new parametric insurance policy that was launched on 1 May 2025.
The policy was triggered following the multiple disaster events that impacted the country between 2 May to 4 August 2025. The Lao PDR National Disaster Management Office (NDMO) had reported that 305,196 people were affected by these multiple disaster events.
Over the past few months, tropical cyclones Wutip and Wipha, along with associated flooding and seasonal monsoon rains, have severely impacted the country. These events caused widespread damage to farmland, disrupted the power grid, and affected critical infrastructure including schools, roads, bridges, irrigation systems, and sanitation facilities.
As the aggregated number of affected people surpassed the second payout tier threshold (300,000–449,999 people), the policy terms were met, triggering the $2m payout. The payout was confirmed and remitted by the insurer with in just six days after Gallagher Re, the calculation agent, verified the disaster impact against policy thresholds.
The payout supports the Lao PDR government’s emergency response and recovery activities in line with a pre-agreed contingency plan. The plan was developed by the ministry of finance of Lao PDR in partnership with the World Bank and SEADRIF, ensuring targeted use of funds to support emergency response and recovery, while meeting fiduciary standards and following the World Bank’s Environmental and Social Framework (ESF).
Lao PDR department of state-owned enterprises and insurance supervision director general Phaitoun Thienglamay said, “Typhoon Wutip and Wipha have had severe impacts on our communities, and our government agencies are implementing much needed response measures.
“This payout will help us to respond quickly, especially in the most affected areas. The policy’s structure—triggering payouts based on the number of people impacted—has proven effective and well-suited to Lao PDR’s disaster management system. We appreciate SEADRIF’s swift support during this critical time.”
SEADRIF Insurance ED Benedikt Signer said, “We commend the government’s rapid reporting, which enabled this mechanism to function as intended. Multiple medium-sized disaster events can cumulatively unlock substantial support, not just single large disasters. SEADRIF will continue to work closely with the Government to monitor the evolving situation resulting from the recent Tropical Storms Kajiki and Nongfa.
This first-of-its-kind policy was launched in collaboration with the Government of Lao PDR, the World Bank, and insurance industry partners. It represents a major innovation in disaster risk financing. By using official government data on the number of people affected as the sole trigger for payouts, the policy ensures alignment with national systems and enables faster response based on real-time conditions on the ground.
SEADRIF is a regional platform that provides participating nations with advisory and financial services to increase preparedness, resilience, and cooperation in response to climate and disaster risks. It is established and owned by ASEAN+3 countries, with financial support from the Governments of Japan and Singapore and technical support by the World Bank.