Danish Red Cross launches parametric flood insurance to strengthen flood resilience in Malawi

Bech-Bruun represented the Danish Red Cross in connection with its conclusion of a parametric insurance agreement with African Risk Capacity Ltd. The transaction concerns a parametric insurance agreement entered into as part of a ground‑breaking pilot project designed to strengthen community resilience to severe flooding in Malawi through rapid, trigger‑based disaster risk financing. The instrument provides pre‑arranged funding that is released when objective, pre‑defined thresholds for flooding are met, enabling faster humanitarian responses. Malawi is highly exposed to severe flooding, with potential for substantial economic losses and damage to homes, crops and infrastructure. Traditional disaster funding models are often reactive and can give rise to delays and uncertainty regarding the availability of support. The new parametric insurance instrument addresses these challenges by ensuring prompt access to funds once established triggers are activated. The pilot project is a collaboration between the Malawi Red Cross Society and the Danish Red Cross, together with African Risk Capacity Ltd., JBA Global Resilience, the InsuResilience Solutions Fund and the Danish Ministry of Foreign Affairs. Bech-Bruun assisted the Danish Red Cross in this important step towards more resilient and timely humanitarian responses. Bech-Bruun represented the Danish Red Cross with a team composed by: Anne Buhl Bjelke, Camilla Søbjerg Nielsen, and Amalie Biltoft.

Danish Red Cross launches parametric flood insurance to strengthen flood resilience in Malawi

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