Closing the Protection Gap
The negative impact of climate change is expected to intensify in the coming decades. Thus, governments and societies need to prepare for natural disasters such as droughts, floods and storms in order to avoid the loss of lives and livelihoods. Insurance can play a critical role in effective disaster risk management by strengthening their resilience to climate change. Timely insurance payouts not only help people to recover faster but also render access to finance for transformative measures. Giving climate risk a price also incentivises adaptation measures, fosters risk reduction and avoids future damages ex-ante. However, especially in developing economies, the share of uninsured climate risk remains high. Thus our mission is to support vulnerable people and countries in the Global South to bounce back better in the face of climate and disaster risks through innovative climate risk insurance solutions.
Climate risk insurance products need to be well adapted to the needs of the poor and vulnerable populations but also represent a financially sustainable product in order to reach scale and secure replicability. We, therefore, seek to closely involve the insurance industry. On the one hand, to leverage its expertise and know-how in the development of new and innovative climate risk insurance solutions. On the other hand, to integrate its capital in form of insurance coverage for the solutions to be developed. By doing so, we foster public-private partnerships to actively strengthen the case for the insurability of climate risks.
Developing Climate Risk Insurance Products
We support and promote the joint product development and implementation of innovative climate risk insurance products. We provide grant-based co-funding to joined partnerships where at least one Project Partner is:
- representing the demand and needs of end-beneficiaries (e.g. national or regional government bodies, NGOs, local insurers),
- willing to act as a risk taker (e.g. reinsurance company), and
- located (i.e. officially registered) in a developing or emerging economy.
Partnerships are invited to apply for co-funding submitting proposals for the development of climate risk insurance products in specific Call for Proposals.
Since 2019, we launched seven Calls for Proposals that generated high interest. We received and evaluated over 280 applications for co-financing the product development of innovative climate risk insurance solutions.
We are currently supporting projects on macro, meso, and micro level in South Africa, North Macedonia, Serbia, Colombia, Peru, Bangladesh, Ghana, Tanzania, India, Nepal, Ethiopia, Kenya, Guatemala, Honduras, Belize, Uganda, Togo, Rwanda, Mexico, Indonesia, Nigeria, Philippines and Argentina.
Our Projects
Large-scale smallholder farm drought insurance in South Africa
risks:
Drought
timeframe:
Sep 2019 - Nov 2022
Product / Solution:
Index-based crop and livestock insurance
objective:
Improving cost efficiency of insurance solutions and making them affordable to smallholder farmers. Enhanced local livelihoods through improved access for smallholder farmers to credit and facilitating investment in crop and livestock production.
beneficiaries:
Smallholder farmers and their families
Partnership members:
Land Bank Insurance Company Limited (LBIC) & Celsius Pro
summary:
In 2015, South Africa was hit hard by a severe drought and this particularly threatened the livelihoods of smallholder farmers. The InsuResilience Solutions Fund enables the Partnership to work together with the local insurance industry to strengthen resilience by providing access to climate risk insurance for the farmers affected. The project will enhance local livelihoods by improving access to credit, facilitating investment in crop and livestock production, and creating resilience and stability.
Climate risk insurance for family farms in Serbia
partner:
Globos Osiguranje, Europa Re
Area Yield Shortfall Guarantee
region:
Entire country
risks:
Extreme weather events, e.g. drought, frost, windstorm, excess rainfall, high temperatures, flood
sector:
Agriculture
timeframe:
Jan 2020 - Jan 2023
partner:
Ministry of Agriculture, Forestry and Water Economy (MAFWE), Europa Re
implemented by:
Europa Re
Ministry of Agricultre, Forestry and Water Economy of the Republic of North Macedonia (MAFWE)
Product / Solution:
Sovereign psot disaster compensation programme
objective:
Increase resilience of farmers and poor families in rural areas in North Macedonia
beneficiaries:
Farmers, farm holdings
download:
Project Brief North Macedonia_Nov 2022
(PDF-File, 713 KB)
Mitigating risk in agriculture through climate insurance for smallholder farmers
region:
North, South and Eastern parts of Bangladesh
risks:
Floods, heavy rainfalls, dry spells
sector:
Agriculture
timeframe:
Jun 2021 - Dec 2022
implemented by:
BRAC
Syngenta Foundation for Sustainable Agriculture (SFSA)
Syngenta Foundation for Sustainable Agriculture Bangladesh
Green Delta Insurance
Product / Solution:
Weather-index-based agricultural insurance
objective:
Improving pilot products and scaling up weather index insurance. Increased insurance penetration affordable to smallholder farmers. Targeting 30 percent female farmers.
beneficiaries:
Smallholder farmers and their families
summary:
Besides facing enormous weather risks, Bangladesh’s smallholders have suffered heavily from the Covid-19 pandemic. A new international partnership, co-funded by the ISF, aims to provide suitable climate-risk insurance to the farmers affected. The project enhances local livelihoods by facilitating investment in crop and livestock production, and creating resilience and stability.
download:
Bangladesh Project Brief_Nov 2022
(PDF-File, 711 KB)
Resilient and empowered SMEs and smallholder farmers in Colombia
region:
Countrywide
risks:
Drought, excess rain, earthquake
sector:
Finance
timeframe:
May 2020 - Jun 2023
implemented by:
Microinsurance Catastrophe Risk Organization (MiCRO)
Uni2
Fundación delamujer
Fedepanela
SBS Seguros Colombia
Seguros Bolivar
Product / Solution:
Index-based insurance
objective:
Improving resilience of micro-entrepreneurs and smallholder farmers in Colombia against natural disasters and extreme weather events
beneficiaries:
Micro-entrepreneurs, smallholder farmers and their families
summary:
ISF is co-funding an innovative insurance approach to improve resilience of micro-entrepreneurs and smallholder farmers in Colombia against natural disasters and extreme weather events. The project is promoted by MiCRO in partnership with SBS Seguros Colombia S.A. The climate-risk insurance solution will provide immediate liquidity in case of a natural disaster.
download:
Project Brief Colombia (MiCRO)_Nov 2022
(PDF-File, 733 KB)
Climate risk insurance for smallholder farmers in Tanzania
region:
Arusha, Moshi and Southern Highlands
risks:
Multi risk including drought, flood, pests and diseases, hail, animal attacks, etc.
sector:
Agriculture
timeframe:
Dec 2020 - Jan 2023
implemented by:
CRDB Bank
NMB Bank
Alliance for a Green Revolution in Africa (AGRA)
Pula Advisors
Reliance Insurance
Product / Solution:
Area Yield Index
objective:
Poor and vulnerable policyholders protected against loss of income due to flood, earthquakes, and drought
beneficiaries:
Smallholder farmers
download:
Project Brief Tanzania_Nov 2022
(PDF-File, 689 KB)
Increasing smallholder farmer resilience to climate change through technology and innovation in climate risk insurance products and distribution channels in Ghana
region:
Guinea Savannah Zone
risks:
Multi risk including drought, flood, pests and diseases, hail, animal attack, etc.
sector:
Agriculture
timeframe:
Nov 2020 - Dec 2022
implemented by:
The Ghana Cocoa Board (COCOBOD)
The West African Rice Company
Alliance for a Green Revolution in Africa (AGRA)
Pula Advisors
Ghana Agricultural Insurance Pool (GAIP)
GLICO General
objective:
Poor and vulnerable policyholders protected against loss of income due to flood, drought, pest and disease, and other risks
beneficiaries:
Smallholder Farmers
download:
Project Brief Ghana_Nov 2022
(PDF-File, 694 KB)
Insurance for Public Schools (Colégios Públicos en el Perú)
region:
Countrywide starting with Lima
risks:
Multi risk cover
sector:
Infrastructure
timeframe:
Sep 2020 - Oct 2022
implemented by:
APESEG
AXA XL
Munich Re Service GmbH
JBA Risk Management
Fondazione GEM
Picsure
Product / Solution:
Sovereign insurance programme
beneficiaries:
School staff and pupils of public schools and their parents
download:
Project Brief Peru_Nov 2022
(PDF-File, 714 KB)
Development of a natural disaster risk insurance scheme for Nagaland
region:
Nagaland
risks:
Excess rainfall, earthquakes
sector:
Disaster Risk Management
timeframe:
Mar 2021 - Apr 2023
implemented by:
Nagaland State Disaster Management Authority (NSDMA)
Tata AIG General Insurance Company
Swiss Re
Faber Consulting
Product / Solution:
Sub-sovereign insurance programme
objective:
Enhance the robustness and reliability of SDRF / NDRF payments to offer emergency relief and compensate damages incurred by the population of Nagaland.
beneficiaries:
Households, individuals
download:
Project Brief Nagaland_Nov 2022
(PDF-File, 747 KB)
Introducing insurance for flood prone communities in Nepal
region:
Province 5 and Province 7, Karnali river basin
risks:
Flood
sector:
Emergency relief
timeframe:
Mar 2021 - Apr 2023
implemented by:
Practical Action
Stonestep
Shikhar Insurance
Global Parametrics
Product / Solution:
Index-based insurance solution
objective:
Increased resilience of smallholder farmers against climate and disaster risk
beneficiaries:
Smallholder farmers
download:
Project Brief Nepal_nov 2022
(PDF-File, 836 KB)
Ehancing Medellín's Urban Resilience through Insurance
region:
Medellín
risks:
Flood, landslides, earthquake
sector:
Emergency response
timeframe:
May 2021 - May 2023
implemented by:
Global Communities
Hannover Rück
Willis Towers Watson
Product / Solution:
Parametric insurance solution
objective:
Increased resilience of affected communities in post-disaster scenarios through livelihood servic-es (food and cash disbursements) and emergency response efforts (infrastructure repair)
beneficiaries:
Urban population of Medellín
summary:
This public-private partnership and the Medellín project are part of implementing the Tripartite Agreement between the German Federal Ministry for Economic Cooperation and Development (BMZ), the IDF and the United Nations Development Programme (UNDP) to support risk management solutions for climate-vulnerable countries. The ISF is one of the vehicles used to support the implementation of the joint agreement.
download:
Project Brief Medellín_Nov 2022
(PDF-File, 778 KB)
Insuring the Mesoamerican Reef
region:
Mesoamerican Reef (Mexico, Belize, Guatemala, and Honduras)
risks:
Hurricanes
sector:
Ecosystem conservation
timeframe:
May 2021 - Jun 2023
implemented by:
Mesoamerican Reef (MAR) Fund
Willis Towers Watson
Product / Solution:
Parametric insurance solution
objective:
Increased climate resilience of the MAR, its own-ers, and beneficiaries who depend on it for eco-system services (
beneficiaries:
Coastal communities depending on ecosystem services (e.g. coastal protection, fishery, etc.)
download:
Project Brief MAR_Nov 2022
(PDF-File, 772 KB)
Crop Insurance Program for smallholder farmers in Kenya
region:
10 counties in Kenya
risks:
Drought, excess rainfall and climate related diseases
sector:
Agriculture
timeframe:
Jun 2021 - Jul 2023
implemented by:
ACRE Africa
Alliance of Biodiversity International and International Center for Tropical Agriculture (CIAT)
VanderSAT
Product / Solution:
Hybrid insurance product based on soil moisture index combined with picture-based loss verification tool
objective:
Increased resilience of smallholder farmers to cli-mate and disaster risks
beneficiaries:
Smallholder farmers
download:
Project Brief Kenya_Nov 2022
(PDF-File, 678 KB)
Increased resilience against drought and extreme rainfall for smallholder farmers in Uganda
region:
Countrywide
risks:
Drought, excessive rainfall
sector:
Agriculture
timeframe:
Sep 2021 - Oct 2023
implemented by:
OKO Finance
Sanlam
eLEAF
Agricultural Reinsurance Consultants (ARC)
Product / Solution:
Multi-peril index-based crop insurance
objective:
Increased resilience of Ugandan farmers against weather and climate-related shocks
beneficiaries:
Smallholder farmers
download:
Project Brief Uganda_Nov 2022
(PDF-File, 764 KB)
FarmCover II
region:
Togo
risks:
Drought, Excessive rainfall
sector:
Agriculture
timeframe:
Sep 2021 - Oct 2023
implemented by:
Mouvement Alliance Paysanne du Togo (MAPTO)
Assilassimé Solidarité
Federation Nationale des Cooperatives Productrices des Soja (FNCPS)
Lorica Conseil
CLIN E-Agribusiness
SUNU Togo
Allianz Re
eLEAF
Product / Solution:
Index-based insurance
objective:
Farmers increase their productivity through in-vestments (due to insurance linked to loans for agricultural inputs)
beneficiaries:
Smallholder farmers
download:
Project Brief Togo_Nov 2022
(PDF-File, 755 KB)
Café Seguro: Climate Protection for Smallholder Farmers
region:
Caldas and Antioquia; to be upscaled to Huila, Cauca and Nariño
risks:
Droght and extreme rainfall
sector:
Agriculture (coffee production)
timeframe:
Oct 2022 - Nov 2024
implemented by:
Blue Marble Micro
Seguros Bolívar
Fundación Local Partners
Product / Solution:
Index-based insurance based on CHIRPS satellite data
objective:
Increased resilience of affected farm households and vulnerable populations to drought and ex-treme rainfall due to timely support and financial protection
beneficiaries:
Smallholder coffee farmers and their families
summary:
Based on the INFORM Index, Colombia ranks among the top twenty countries vulnerable to natural hazards with high exposure to extreme weather events like earthquake, tsunami and floods. Farmers experience prolonged dry spells, excess rainfall as well as delayed onset of rainfall, pests and other diseases, further enhanced by weather patterns of El Niño and La Niña. To strengthen the development of the Colombian agricultural insurance market, the Project Partners launched an index-based insurance “Café Seguro” against drought and excess rainfall. The innovative character of the Café Seguro product, which will now be upscaled to other regions, lies in catering to the specific agronomic needs of coffee and being designed in close cooperation with the coffee farmers themselves. In case of an event, payouts will be provided directly to the farmers without the need for a claim’s report or on-the-ground loss assessment.
download:
Project Brief Café Seguro_Nov 2022
(PDF-File, 701 KB)
Technology based Farm-level Yield Insurance for Smallholder farmers
region:
Jharkhand, West Bengal, Punjab, Haryana, Andhra Pradesh , Telangana and Maharashtra
risks:
All-risk
sector:
Agriculture
timeframe:
May 2022 - Jun 2024
implemented by:
Weather Risk Management Services (WRMS)
INGEN Technologies
UPL
Product / Solution:
Yield guarantee (SecuFarm) combined with smart climate risk management tools
beneficiaries:
Smallholder farmers
summary:
India is highly exposed to extreme weather events, such as floods, earthquakes, tsunamis and cyclones as well as droughts which put the country in the top 5 of the most vulnerable countries to natural hazards currently ranking 4th according to the Climate Risk Index. The agricultural sector accounts for more than 40% of the employment in India where especially smallholder farmers are highly dependent on their agricultural production and one of the most exposed and vulnerable groups to the effects of climate change and adverse weather events. To close the protection gap, the Project Partners offer the product SecuFarm to assure a benchmark yield, which is higher than the farmers’ past achievement, in proportion to their compliance to the farm level risk management measures like soil management, nutrition, timely irrigation, pest and disease control, suggested by WRMS. If the actual yield is below the benchmark yield, the farmers are compensated for their costs, in proportion to the shortfall. This farm level yield insurance concept allows incorporation of the necessary farm level risk management measures in the insurance product design, and in turn to offer premium discount or a higher guaranteed yield to farmers who undertake the necessary farm level risk management measures. Premiums/ fees for the yield guarantee are paid by the farmers (without subsidies).
download:
Project Brief SecuFarm_Nov 2022
(PDF-File, 951 KB)
Scaling-up and improving National Agriculture Insurance Scheme (NAIS) in Rwanda
region:
All districts
risks:
Drought, heat waves, flood, wind, extreme rainfall, pests and diseases; livestock accidents, death
sector:
Agriculture
timeframe:
Mar 2022 - Apr 2024
implemented by:
Government of Rwanda, represented by the Ministry of Finance and Economic Planning (MINECOFIN)
K.M. Dastur & Company (KMD)
Product / Solution:
Indemnity-based insurance for livestock; Area Yield Index for crops, insurance to be bundled with credit and agri inputs or stand-alone
beneficiaries:
Smallholder farmers
summary:
The Rwandan agricultural sector contributes about one third to GDP and is a critical driver of economic growth. About 80 percent of all households are engaged in agriculture. Both crop and livestock production in Rwanda are vulnerable to natural disasters such as droughts, landslides, floods and storms, and are subject to pest and disease-related risks. The vast majority of agricultural producers in Rwanda are smallholder farmers who are highly vulnerable to climate change and natural disasters, a fact that poses a significant social and economic problem. The Project Partners aim to further enhance and scale up the offer of the National Agricultural Insurance Scheme (NAIS) by distributing the products through additional cooperatives, banks and microfinance institutions. Additional crops and livestock will be included, supplemented by training field agents on the product, educating farmers and enhancing local technical capacity of different stakeholders. Furthermore, automation of claims processes and mobile applications to capture data, as well as the use of mobile money will be used to facilitate upscaling and to enhance transparency. The government subsidises up to 40% of the cost of the premiums.
download:
Project Brief Rwanda_Nov 2022
(PDF-File, 694 KB)
(Sub-)Sovereign Risk Transfer Scheme for Urban Floods in Ghana
region:
Greater Accra Metropolitan Area
sector:
Emergency relief
timeframe:
Jul 2022 - Aug 2024
partner:
Ministry of Finance, National Disaster Management Organisation (NADMO), Ghana Meteorological Agency (GMet), ICEYE, Flood Tags
implemented by:
Allianz SE
Allianz Insurance Company of Ghana
Swiss Re
HKV Iijn in water
Product / Solution:
Sovereign index-based insurance solution
beneficiaries:
Urban population of the Greater Accra Metropolitan Area
summary:
This public-private partnership and the Ghana project are part of implementing the Tripartite Agreement between the German Federal Ministry for Economic Cooperation and Development (BMZ), the IDF and the United Nations Development Programme (UNDP) to support risk management solutions for climate-vulnerable countries. The ISF is one of the vehicles used to support the implementation of the joint agreement.
Agricultural Insurance for Smallholder Farmers in Mexico
region:
Oaxaca, Tabasco and Chiapas, then rollout throughout the country
risks:
Extreme rainfall and droughtInde
sector:
Agriculture
timeframe:
Mar 2022 - Apr 2024
implemented by:
AXA Climate
Guy Carpenter Mexico, Intermediario de Reaseguros
Munich Re Service GmbH
Raincoat
Swiss Re
Product / Solution:
Index-based stand-alone insurance based on CHIRPS satellite data
beneficiaries:
Smallholder farmers
summary:
This public-private partnership and the Mexico project are part of implementing the Tripartite Agreement between the German Federal Ministry for Economic Cooperation and Development (BMZ), the IDF and the United Nations Development Programme (UNDP) to support risk management solutions for climate-vulnerable countries. The ISF is one of the vehicles used to support the implementation of the joint agreement.
download:
Project Brief Mexico_Nov 2022
(PDF-File, 676 KB)
Climate insurance for smallholder farmers in Indonesia (CISFI)
region:
Gowa, Jeneponto, Bantaeng, Bone and Takalar (South Sulawesi); Karawang, Indramayu (West Java); Tulungagung (East Java)
risks:
Drought, deficit of rainfall
sector:
Agriculture
timeframe:
Oct 2022 - Oct 2024
implemented by:
AXA S.A., PT Mandiri AXA General Insurance, AXA Climate, Yayasan Agri Sustineri Indonesia (YASI), JIVA AG Pte Ltd.
Product / Solution:
Index-based insurance offered with other services, e.g. high quality input, agri advisory, access to offtakers, access to input loans
beneficiaries:
Smallholder farmers cultivating maize and rice
summary:
Given Indonesia's significant exposure to climate risks like earthquakes, tsunamis and cyclones, agriculture is one of the most affected sectors in the country. Close to 30% of Indonesia's current total workforce is employed in the agricultural sector. Limited access to capital and agricultural technologies, limited knowledge of good / proper agricultural practices, and limited knowledge and access to farming risk management tools are some of the major issues faced by especially the poor and vulnerable population. In order to enhance the resilience of rice and maize smallholder farmers to droughts, YASI and Mandiri AXA are working together to offer index-based insurance bundled with loans, access to inputs and offtakers and complemented by advisory services.
Within the ISF project, AXA will finalise the development of insurance for rice farmers and develop insurance for maize farmers against drought.
The insurance will be offered to the farmers through
• Jiva’s Platform (with already 25,000 registered farmers enabled by an app to buy inputs, access loans, receive advisory and sell offtakes) where insurance will be bundled with loans and
• Agents (last mile delivery, management by JIVA’s lead staff)
• Yasi and partnering banks / MFIs (i.a. Bank BRI) offering insurance bundled with input loans and providing access to inputs and off takers.
download:
Project Brief Indonesia_Nov 2022
(PDF-File, 712 KB)
Flood risk cover for Lagos State
region:
Lagos State
risks:
Flood (fluvial, pluvial and coastal)
sector:
Emergency relief, reconstruction of public assets
timeframe:
Nov 2022 - Dec 2024
partner:
Lagos State Government, UNDP, African Risk Capacity
implemented by:
AXA Climate, Swiss Re, African Risk Capacity Ltd., AXA Mansard, JBA, ICEYE
Product / Solution:
Stand-alone index-based insurance using satellite data and/or weather stations and gauges
beneficiaries:
Vulnerable population and SMEs
summary:
This public-private partnership and the Nigeria project are part of implementing the Tripartite Agreement between the German Federal Ministry for Economic Cooperation and Development (BMZ), the IDF and the United Nations Development Programme (UNDP) to support risk management solutions for climate-vulnerable countries. The ISF is one of the vehicles used to support the implementation of the joint agreement.
Livelihood Protection for Rural Communities in Colombia
region:
Choco, La Guajira, Meta and Cundinamarca
risks:
Lack and excess of rainfall
sector:
Agriculture
timeframe:
Nov 2022 - Dec 2024
partner:
Ministry of Agriculture
implemented by:
Guy Carpenter Colombia, Munich Re, Swiss Re, AXA Climate, Raincoat
Product / Solution:
Index-based insurance based on satellite data to complement existing social protection schemes
beneficiaries:
Vulnerable rural populations
summary:
This public-private partnership and the Colombia project are part of implementing the Tripartite Agreement between the German Federal Ministry for Economic Cooperation and Development (BMZ), the IDF and the United Nations Development Programme (UNDP) to support risk management solutions for climate-vulnerable countries. The ISF is one of the vehicles used to support the implementation of the joint agreement.
