Scaling up financial protection against disasters for vulnerable populations in Senegal

The ISF has signed a grant agreement to support the development and implementation of two risk transfer solutions for drought and flood to offer protection to vulnerable populations in Senegal. Senegal faces significant exposure to climate-related disasters, notably droughts and floods, which pose threats to the country’s stability, food security, and the livelihoods of hundreds of thousands of people. The InsuResilience Solutions Fund (ISF) is co-funding the implementation of the project alongside Fonds de Solidarité National (FSN) and Gallagher Re.

Climate-related shocks and disasters disproportionately affect Senegal’s poor and vulnerable. Agriculture, livestock rearing, and fishing serve as primary income sources for this segment, with earnings highly exposed to climate risks, impeding households’ capacity to fulfill their food needs and exacerbating food insecurity.

In response to this challenge, the ISF signed a grant agreement and co-funds the project together with Fonds de Solidarité National (FSN), acting as project lead, and Gallagher Re, a private insurance broker. The goal is to offer protection to vulnerable populations in Senegal by developing and implementing two market-based risk transfer solutions for drought and flood. The project aims to strengthen climate resilience throughout the country.

FSN is a Public Administrative Institution that carries out national solidarity actions to scale up the financial response to crisis and emergency situations in Senegal. It provides support to distressed vulnerable populations affected by complex social, economic and disaster shocks requiring the intervention of public authorities. When a disaster occurs, FSN works with local actors such as the gendarmerie, social operators, and community development agents to identify affected populations and assess damages.
The proposed project aims to expand FSN’s financial resources in the aftermath of a drought or flood through the use of risk transfer instruments, ensuring fast payouts and effective disaster response. The project also aims to further develop FSN’s systems and capability for early warnings, accurate loss evaluation, and fast and reliable processing of compensations.