SEADRIF’s New Policy Delivers US$2M Payout to Lao PDR in 6 Days, Using Official National Impact Data

The SEADRIF Insurance Company on 1 September 2025, made a payout of US$2 million to the Ministry of Finance of Lao PDR, following reports that 305,196 people were affected by multiple disaster events between 2 May to 4 August 2025. The official impacted data was reported by the Lao PDR National Disaster Management Office (NDMO). This payout was triggered under the new sovereign parametric insurance policy issued to Lao PDR in May 2025.

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 US$2 million payout.

SEADRIF Insurance Company initiated the payout on September 1, 2025, just 6 business days after receiving the latest data from the government’s National Disaster Management Office (NDMO), including the significant impact that lifted the aggregate number over the threshold. This provides liquidity to address immediate needs in the affected communities. The payout was confirmed after Gallagher Re, the calculation agent, verified the disaster impact against policy thresholds.

The payout supports the 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).

Mr. Phaitoun Thienglamay, Director General, Department of State-Owned Enterprises and Insurance Supervision, Ministry of Finance, Lao PDR, 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.”

Mr. Benedikt Signer, Executive Director of SEADRIF Insurance Company, said: “This payout provides timely financial support to help the Government of Lao PDR respond to immediate recovery efforts.

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. Our thoughts are with the people of Lao PDR, and we stand ready to process further payouts should additional thresholds be reached within the current coverage year.”

This first-of-its-kind policy—launched in collaboration with the Government of Lao PDR, the World Bank, and insurance industry partners—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.

We express our sincere thanks to our partners, including the Global Shield Financing Facility, the World Bank, and the wider ASEAN+3 community, for their continued support in building stronger disaster resilience for the region.