Aon and Start Network have launched a bespoke reinsurance mechanism to transform humanitarian financing amid a backdrop of increasing climate crises.
The structure for the launch is based in Guernsey within Aon’s White Rock Group.
The transaction provides an additional insurance layer to a first-of-its-kind non-governmental-organisation-managed risk pool, Start Ready. As a global pooled fund, it is designed to enable anticipatory action through prepositioned funding for climate risks.
Aon and Start Network’s tailored insurance product will ensure that if funds run low due to higher-than-anticipated spending, Start Ready will still be able to support vulnerable communities.
Since its launch in 2022, Start Ready has disbursed £12 million to frontline NGOs and supported approximately one million people across 30+ activations.
In addition to supporting humanitarian financing, the partnership will leverage donor funding and attract private capital, maximise efficiency of the Start Ready pool and safeguard pooled humanitarian funds from insolvency.
Emma Karhan, Head of Public Private Partnerships at Aon, said: ‘We are thrilled to work with the Start Network on what is a timely and crucial mechanism for humanitarian efforts.
‘According to a recent IPCC report on climate adaptation, disasters fuelled by the climate crisis are already intensifying at a higher rate than expected and in August 2024, Britain’s largest insurance firms warned that the climate crisis contributed to driving up insurance payouts to the highest level in seven years.
‘This partnership that supports Start Ready underscores our ethos of fostering resilience and providing innovative solutions for humanitarian efforts where it’s needed most.’
Anna Farina, Head of Crisis Anticipation and Risk Finance at Start Network added: ‘Thanks to the collaboration with Aon, we have been able to take a significant step forward in anticipatory action that enhances protection for vulnerable communities.’
Ciaran McCabe, Strategy & Delivery Leader for Aon’s White Rock Group added:
‘This pioneering structure highlights the critical role that the insurance sector plays in mobilizing risk capital to support global humanitarian initiatives. Guernsey’s leadership as the home of cell companies continues to foster innovation in this area, and White Rock is proud to have played a key role’.
Guernsey’s insurance sector continues to lead and innovate on humanitarian and catastrophe structures as a premier jurisdiction for sustainable finance.
