Innovative humanitarian risk pool draws on the work of STEaPP’s Erica Thompson 2 May 2025

A new milestone in humanitarian financing has been reached by Start Ready, the first-of-its-kind NGO-managed risk pool which prepositions anticipatory financing to proactively support and protect communities at risk of climate crises. Start Ready allows members to plan with predictable funding that is immediately released ahead of the crisis onset. The fourth Start Ready Risk Pool was launched on 1^st May 2025, marking a continued increase in pre-positioned funds and the first anticipatory Risk Pool to take advantage of reinsurance cover.

Dr Erica Thompson, Associate Professor in Modelling for Decision Making at STEaPP, is a newly-appointed member of the Start Ready Governance Committee. The Governance Committee make decisions about the structuring of the risk pool and the reinsurance coverage as well as the provision for basis risk, in the event that the model predictions fail to trigger action ahead of a damaging event.

By prepositioning funding ahead of risk seasons and agreeing to forecast thresholds as the conditions for fund release, Start Ready allows members to plan with predictable funding that is immediately released ahead of the crisis onset. A recent study carried out from an activation for a cyclone in Bangladesh demonstrated that this approach resulted in economic savings of $14.88 USD for every dollar invested in anticipatory actions.

By creating a risk pool, Start Ready is innovative in utilising reinsurance and financial modelling to maximise effective fund management – a unique approach to humanitarian pooled funds. This enables the fund to stretch or leverage donor funding to access private capital. Meaning that for every £1 donated to Start Ready, we can preposition up to £2 for communities who need it. 

Over the past three years, Start Ready has disbursed £12m to frontline NGOs in anticipation and early response to hazards such as cyclones, floods, droughts, and heatwaves, directly reaching nearly 1 million people.

Erica Thompson said:

“I’m excited to be part of the Start Ready Governance Committee, putting my research and experience in climate science and risk modelling to the service of innovative decision-making which prioritises outcomes for people and communities at the front line of the climate crisis.”