People living in Dzaleka refugee settlement in Malawi face worsening droughts that threaten food security, increase reliance on aid, and exacerbate tensions with the host community. Humanity Insured and UNHCR have partnered to co-fund innovative drought insurance that provides guaranteed early cash pay-outs before droughts strike, supporting both refugees and the host community. The policy uses the Water Requirement Satisfaction Index, a model based on 10-day cumulative rainfall. Each region is divided into areas with specific benchmarks, and drought is defined as rainfall falling below a set percentage of these benchmarks. To reduce basis risk, there are three attachment points, with pay-outs based on the number of people projected to be affected. Alongside insurance, funding supports resilience-building efforts such as water management and sustainable agriculture. This initiative helps Dzaleka’s overstretched population withstand climate shocks, secure food, rebuild livelihoods, and plan for the future with dignity.
UNHCR, the UN Refugee Agency, protects people forced to flee their homes because of conflict and persecution. They save lives, protect rights and help build better futures.
People protected in 1 year
Peril covered
Maximum pay-out in 1 year
“Needs have ballooned, and crises have multiplied. Humanitarian assistance alone is not enough. Every few months the world moves to another crisis and reacts to the priority. Therefore, it’s important we respond immediately and make sure we build sustainability into the response”UN High Commissioner for Refugees, Filippo Grandi, March 2025