A Regional Disaster with Local Consequences
The scale of Yagi’s destruction was immense. Damages across Southeast Asia were estimated at about US$6 billion, with an estimated quarter of a million homes destroyed or badly damaged. Vietnam faced the greatest losses, while the Philippines and Laos also endured severe flooding, infrastructure and crop destruction.
In Laos, the storm submerged northern districts, damaging homes and schools and displacing tens of thousands. Economic losses in the country alone reached an estimated US$33 million.
For the Government of Lao PDR, the challenge was not only the extent of the damage but the urgency of response. Within just five days of the first peak in flooding, the Ministry of Finance received an initial payout from SEADRIF under the parametric flood insurance policy that enabled timely recovery efforts to commence. A second tranche followed a week later as the flooding spread further. In total, US$3 million was paid out under the parametric policy — funds that the Government directed toward emergency relief and the first steps of recovery.
Timely Support, Targeted Action
The implementation of the payout funds in Lao PDR post-Typhoon Yagi was done in line with a contingency plan developed with the World Bank which followed World Bank environmental & social standards. The payout-enabled recovery activities supported an estimated 103,378 households, reaching more than half a million people across seven provinces of the country — including Xayyabury, Houaphan, Xiengkhouang, Luang Namtha, Luang Prabang, Oudomxay, and Vientiane.
The effort touched both majority and minority communities, reflecting the diversity of those living in Laos’ northern provinces. Importantly, the work itself became a source of support: some 3,500 workers were engaged in civil works, most of them local, creating short-term employment and spreading the benefits of recovery more widely.
Roads That Reconnected Communities
The Government prioritized repairing transportation networks. For families cut off by floods, this meant more than asphalt and bridges; it meant children could walk back to school, parents could reach local markets, and once-isolated communities could access health centers and support again. Restoring mobility helped restore normalcy in daily life.
Water for Fields and Families
Irrigation systems were rehabilitated to help farmers bring water back to their fields. For households whose crops had been submerged or washed away, this was the difference between despair and hope. The ability to plant again meant food security in the months ahead, and confidence that livelihoods could be rebuilt.
Restoring Classrooms and Clinics
The repair and supply of schools was critical, which would allow children to resume learning and routine after weeks of disruption. At the same time, medical supplies were mobilized for affected villages, so clinics could once again serve families. Together, these efforts sought to bring essential services within reach of those in need.
Shelter, Livelihoods, and Safe Water
Additional resources were directed toward housing materials, agricultural supplies, and water systems, each contributing to the simple but vital steps of recovery: securing safe drinking water, repairing homes and restoring livelihoods.
Partnership to Protect Livelihoods
The experience after Typhoon Yagi in Laos showed how pre-arranged financing, paired with government leadership, can alter the course of disaster recovery. Because funds were available almost instantaneously, the Government was able to act decisively, coordinating across departments of agriculture, public works, education, health, and social welfare to deliver tangible results.
For SEADRIF, this was a demonstration of how disaster risk insurance can work as intended — not as an external solution, but as a tool placed in the hands of governments to strengthen their own response. In Laos, it ensured that recovery was not abstract but visible — in reopened roads, flowing irrigation channels, restored classrooms, and supplied clinics.
