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 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, improvement and implementation of innovative Climate Risk Insurance products. We provide grant-based co-funding to consortia consisting of private and / or public entities including civil society, where at least:
- Two Project Partners are willing and legally entitled to sign the potential Grant Agreement,
- One Project Partner is located and legally registered in the country of implementation and willing and legally entitled to sign the potential Grant Agreement,
- One Project Partner is representing the demand and needs of vulnerable households (beneficiaries), and
- One Project Partner is willing to act as risk taker.
Consortia fulfilling the criteria stated above are invited to apply for co-funding submitting proposals in specific Call for Proposals.
Since 2019, we launched 11 Calls for Proposals that generated high interest. We received and evaluated over 400 applications for co-financing the product development and improvement of innovative Climate Risk Insurance solutions.
We are currently supporting projects on macro, meso, and micro level in Argentina, Bangladesh, Belize, Burkina Faso, Colombia, Cote d'Ivoire, Ethiopia, Fiji, Ghana, Guatemala, Honduras, India, Indonesia, Kenya, Malawi, Mexico, Morocco, Nepal, Nigeria, North Macedonia, Peru, Philippines, Rwanda, Senegal, Serbia, South Africa, Tanzania, Togo, Uganda and Uzbekistan.
Our Projects
Large-scale smallholder farm drought insurance in South Africa
region:
Nationwide, with the majority in Eastern Cape, Kwazulu-Natal, North West and Limpopo
risks:
Drought
sector:
Agriculture
timeframe:
Sep 2019 - Nov 2022
implemented by:
Land Bank Insurance Company Limited (LBIC) / Celsius Pro
Product / Solution:
Index-based crop and livestock insurance
beneficiaries:
Smallholder farmers and their families
summary:
In 2015, South Africa was hit hard by a severe drought and this particularly threatened the livelihoods of smallholder farmers. The project will enhance local livelihoods by improving access to credit, facilitating investment in crop and livestock production, and creating resilience and stability.
download:
South Africa Project Brief
(PDF-File, 293 KB)
Climate risk insurance for family farms in Serbia
region:
Nationwide
risks:
Extreme weather events, e.g. drought, frost, windstorm, excess rainfall, high temperatures, flood
sector:
Agriculture
timeframe:
Jan 2020 - Jan 2022
implemented by:
Globos Osiguranje / Europa Re
Product / Solution:
Sovereign post disaster compensation programme
beneficiaries:
Farmers, farm holdings
summary:
The Project Partners aim to increase the climate resilience of farmers and vulnerable families in rural areas in Serbia by developing an efficient and well-designed sub-sovereign post disaster compensation programme. The product already exists but will provide further timely support to affected farm households in the aftermath of natural disasters.
download:
Serbia Project Brief
(PDF-File, 265 KB)
Area Yield Shortfall Guarantee
region:
Nationwide
risks:
Extreme weather events, e.g. drought, frost, windstorm, excess rainfall, high temperatures, flood
sector:
Agriculture
timeframe:
Jan 2020 - Jan 2023
implemented by:
Europa Re / Ministry of Agricultre, Forestry and Water Economy of the Republic of North Macedonia (MAFWE)
Product / Solution:
Sovereign post disaster compensation programme
beneficiaries:
Farmers, farm holdings
summary:
The national agriculture insurance macro scheme (mandatory agriculture insurance pooling system) will enable the Ministry of Agriculture, Forestry and Water Economy (MAFWE) to secure reliable funding for post-disaster support to farmers in order to compensate financial losses due to extreme weather events.
download:
Project Brief North Macedonia
(PDF-File, 263 KB)
Resilient and empowered SMEs and smallholder farmers in Colombia
region:
Nationwide
risks:
Drought, excess rain, earthquake
sector:
Finance
timeframe:
May 2020 - Jun 2023
implemented by:
Microinsurance Catastrophe Risk Organization (MiCRO) / Uni2 / Fundación de la mujer / Fedepanela / SBS Seguros Colombia / Seguros Bolivar
Product / Solution:
Index-based insurance
beneficiaries:
Micro-entrepreneurs, smallholder farmers and their families
summary:
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)
(PDF-File, 300 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 2023
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
beneficiaries:
Smallholder farmers and their families
summary:
The project enhances local livelihoods by facilitating investment in crop and livestock production, and creating resilience and stability.
download:
Bangladesh Project Brief
(PDF-File, 315 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 - Jul 2023
implemented by:
CRDB Bank / NMB Bank / Alliance for a Green Revolution in Africa (AGRA) / Pula Advisors / Reliance Insurance
Product / Solution:
Area Yield Index
beneficiaries:
Smallholder farmers
summary:
To improve the productivity and agricultural risk resilience of SHF, Pula will work together with Reliance and other partners from the agricultural and insurance sectors in Tanzania to provide affordable climate risk insurance solutions a wide range of yield-related risks.
download:
Project Brief Tanzania
(PDF-File, 288 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 2023
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
beneficiaries:
Smallholder Farmers
summary:
To improve the productivity and agricultural risk resilience of smallholder farmers, the Insurtech Pula Advisors will work together with the Ghana Agriculture Insurance Pool (GAIP) and other partners to provide affordable climate risk insurance solutions covering a wide range of yield-related risks. The insurance product will be bundled with inputs (seed and fertiliser) and agronomic advice from providers the SHF already know and trust.
download:
Project Brief Ghana
(PDF-File, 276 KB)
Insurance for Public Schools (Colégios Públicos en el Perú)
region:
Nationwide starting with Lima
risks:
Multi risk cover
sector:
Infrastructure
timeframe:
Sep 2020 - Oct 2024
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
summary:
In this context, insurance represents a facilitator for a comprehensive risk management programme for public schools, including an ex-ante defined financing and reconstruction process. The project may serve as an example for other public assets like hospitals, bridges, and roads in the future.
download:
Project Brief Peru
(PDF-File, 383 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
beneficiaries:
Households, individuals
summary:
The objetive is to enhance the robustness and reliability of SDRF / NDRF payments to offer emergency relief and compensate damages incurred by the population of Nagaland.
download:
Project Brief Nagaland
(PDF-File, 283 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 2024
implemented by:
Practical Action / Stonestep / Shikhar Insurance / Global Parametrics
Product / Solution:
Index-based insurance solution
beneficiaries:
Smallholder farmers
summary:
Vulnerable, land dependent and indigenous peoples living in flood-prone areas with few tangible assets and excluded from post-disaster government support, are left highly vulnerable. Thus, an index based insurance product is being developed and piloted with two layers against floods to increase resilience against the effects of flood and in-land flood with the lowest possible basis risk.
download:
Project Brief Nepal
(PDF-File, 260 KB)
Scaling Up Crop Insurance for Smallholder Farmers in Ethiopia
region:
Districts in Oromia
risks:
Drought
sector:
Agriculture
timeframe:
Apr 2022 - May 2025
implemented by:
Agricultural Transformation Institute (ATI) / Kifiya Financial Technology / Oromia Insurance Company
Product / Solution:
Index-based insurance
beneficiaries:
Smallholder farmers
summary:
Recognising a strong need for the development of an index-based insurance product that would protect smallholder farmers from income shocks arising from severe and catastrophic weather risks, the Project Partners have formed a consortium to further develop and scale a vegetation index crop insurance (VICI) product.
download:
Ethiopia Project Brief
(PDF-File, 464 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 - Jun 2024
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
beneficiaries:
Smallholder farmers
summary:
To address the low insurance penetration of smallholder farmers, ACRE - incollaboration with the Ministry of Agriculture, Livestock and Fisheries (MoALF) - aims to increase the resilience of 300,000 currently uninsured smallholder farmers against climate related risks.
download:
Project Brief Kenya
(PDF-File, 349 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 owners, and beneficiaries who depend on it for eco-system services
beneficiaries:
Coastal communities depending on ecosystem services (e.g. coastal protection, fishery, etc.)
summary:
The project objective is to increase the climate resilience of the MAR region, its owners, and beneficiaries who depend on it for eco-system services.
download:
Project Brief MAR Fund
(PDF-File, 969 KB)
Enhancing 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 Re / Willis Towers Watson
Product / Solution:
Parametric insurance solution
beneficiaries:
Urban population of Medellín
summary:
This public-private partnership and the Medellín project are part of implementing the Tripartite Agreement between BMZ, IDF and 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
(PDF-File, 320 KB)
Building Climate Resilient Agro-Ecosystems of Smallholder Farms
region:
Tamil Nadu, Karnataka, Telanaga, Andhra Pradesh, Odisha and Maharashtra
risks:
Drought, excessive rainfall
sector:
Agriculture, Livestock
timeframe:
Jun 2022 - Jul 2024
implemented by:
IBISA Network / Federation Mutuals / Development of Human Action (DHAN)
Product / Solution:
One index- and one indemnity-based insurance product
beneficiaries:
Smallholder farmers
summary:
The Project Partners focus on small and marginal farmers from 60 community-based Federation Mutuals in six (6) states of India by offering and scaling up two types of products, one index- and one indemnity-based insurance product, which will be accompanied by agroadvisory services.
download:
India IBISA Project Brief
(PDF-File, 307 KB)
Increased resilience against drought and extreme rainfall for smallholder farmers in Uganda
region:
Nationwide
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
beneficiaries:
Smallholder farmers
summary:
Multi-Peril Crop Insurance (MPCI) for large commercial farmers is found to be unaffordable for smallholder farmers, especially compared to index-based insurance products. To promote the development of a sustainable agricultural insurance market for all, in 2016 the Government of Uganda launched the Uganda Agricultural Insurance Scheme (UAIS) offering a range of crop, livestock, poultry and aquaculture insurance via the Agriculture Insurance Consortium (AIC).
download:
Project Brief Uganda
(PDF-File, 346 KB)
FarmCover II
region:
Maritime, Plateaux, Central, Kara and Savanes
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
beneficiaries:
Smallholder farmers
summary:
There is demand for a target group-oriented insurance product to potentially increase the willingness of financial institutions to lend to small-scale farmers. The project therefore aims to 1) up-scale the existing drought index-based insurance product for soy, 2) develop new insurance products covering additional perils and crops, and 3) expand distribution.
download:
Project Brief Togo
(PDF-File, 388 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 / Seguros Bolívar / Fundación Local Partners / Caféxport
Product / Solution:
Index-based insurance based on CHIRPS satellite data
beneficiaries:
Smallholder coffee farmers and their families
summary:
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
(PDF-File, 311 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:
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.
download:
Project Brief WRMS
(PDF-File, 262 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:
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.
download:
Project Brief Indonesia
(PDF-File, 286 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 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.
download:
Project Brief Rwanda
(PDF-File, 517 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 BMZ, IDF and 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:
Ghana Project Brief
(PDF-File, 286 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 - Nov 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 BMZ, IDF and 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:
Nigeria Lagos State Project Brief
(PDF-File, 406 KB)
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 BMZ, IDF and 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
(PDF-File, 265 KB)
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 BMZ, IDF and 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:
Colombia IDF Project Brief
(PDF-File, 255 KB)
Flood Insurance for Target Cities in Argentina (FITCA)
region:
Tres Arroyos, La Paz, Nogoyá, San Jorge
risks:
Riverine flood and/or excess rainfall
sector:
Infrastructure
timeframe:
Feb 2023 - Aug 2025
implemented by:
Hannover Ruck SE / SCOR SE / Guy Carpenter & Company S.A. / La Segunda Cooperativa de Seguros
Product / Solution:
Index-based insurance
beneficiaries:
Population in municipalities
summary:
The project partners propose to develop an index-based insurance solution covering (riverine and/or flash) flood based on data from weather stations and/or satellite data with the four municipalities as insurance policyholders.
download:
Argentina FITCA Project Brief
(PDF-File, 313 KB)
