INTRODUCTION PROMOTING CLIMATE RESILIENCE CLOSING THE PROTECTION GAP INDUCING POSITIVE SOCIETAL CHANGE GOVERNANCE APPENDIX 3.2 The Humanitarian Sector As a reinsurer, we recognize the importance of public sector partnerships in the humanitarian sector to drive positive social impact. By collaborating with organizations such as UNICEF and The Start Network, we aim to contribute to the growth of a locally led humanitarian system that is accountable to those affected by crises. We have a probabilistic approach to understanding risk, which we believe enables us to gain a deeper understanding of the potential impact of humanitarian risks and better manage capital to respond to them. As a thought leader in the industry, we strive to build capacity and innovate products to support our partners in achieving their goals. Thought leadership Capacity building Product innovation Proactive Engagement: Lloyd’s Disaster Risk Facility As one of the founding members of the Lloyd’s DRF, we support the development of innovative insurance products that address insurance gaps around the world. Since its establishment in 2015, the DRF has been providing coverage for catastrophic risks that were previously considered uninsurable, offering contingent risk financing solutions to mitigate the human and financial impacts of natural hazards and other catastrophic risks. The DRF promotes the sustainability of our global economy by enabling developing economies to build resilience against natural catastrophes. With over $445M of notional capacity, the DRF is designed to provide efficient risk capital to support the less developed world. In collaboration with others in the Lloyd’s market, we have developed hurricane and earthquake bond and parametric insurance coverage that offers insurance solutions to communities at risk. Our efforts to develop and provide these insurance products through the DRF demonstrate our proactive engagement in the humanitarian sector. By working with governments, nongovernmental organizations and other stakeholders, we are able to support disaster risk reduction and resilience-building initiatives. 30