The United Kingdom will explore using its aid budget to buy insurance against expensive disasters in low-income countries to avoid sudden “spikes” in emergency spending that threaten to derail other programs.
The Foreign, Commonwealth & Development Office, or FCDO, has invited the insurance industry to come up with firm proposals, and the plan will be part of a new development blueprint to be launched by Prime Minister Rishi Sunak next month, Devex has learned.
Government officials see insurance as a way to ease the “unpredictability” of needing to respond to costly crises within a much-reduced humanitarian budget and regret going cold because of a “media outcry” after the idea was first floated six years ago, according to two U.K. officials who requested to remain anonymous.
About the author
Rob Merrick
Rob Merrick is the U.K. Correspondent for Devex, covering FCDO and British aid. He reported on all the key events in British politics of the past 25 years from Westminster, including the financial crash, the Brexit fallout, the "Partygate" scandal, and the departures of Boris Johnson and Liz Truss. Rob has worked for The Independent and the Press Association and is a regular commentator on TV and radio. He can be reached at rob.merrick@devex.com.
