Swiss Re is developing insurance products to cover natural calamities for developing countries under a new program related to climate.

The Climate Adaptation Development Program aims to create critical mass for financial risk products in Third World countries, where insurance against drought, flood and other natural disasters is not readily available.

Swiss Re says the first stage of the program will provide financial protection against drought for 400,000 people living in Africa.

Since 2004, Swiss Re has created nearly 300,000 policies covering weather risks for developing countries.