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:

  1. Two Project Partners are willing and legally entitled to sign the potential Grant Agreement,
  2. One Project Partner is located and legally registered in the country of implementation and willing and legally entitled to sign the potential Grant Agreement,
  3. One Project Partner is representing the demand and needs of vulnerable households (beneficiaries), and
  4. 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

project

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)


project

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)


project

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)


project

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)


project

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)


project

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)


project

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)


project

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)


project

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)


project

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)


project

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)


project

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)


project

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)


project

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)


project

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)


project

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)


project

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)


project

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)


project

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)


project

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)


project

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)


project

(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)


project

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)


project

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)


project

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)


project

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)


Our three core areas

Focus areas

The InsuResilience Solutions Fund seeks to increase the resilience and capacity of developing and emerging countries to adapt to climate change by:
  1. Supporting comprehensive Climate Risk Analysis as the basis for governments, businesses and households to become more proactive in risk management and to make informed decisions on climate risk management and adaptation strategies.
  2. Offering studies and advice for the development of new concepts for Climate Risk Insurance solutions that take into account the specific needs of vulnerable populations and
  3. Co-funding the development and market introduction of insurance products, as well as supporting the expansion of existing innovative Climate Risk Insurance products.
Cookies and Privacy

This website uses cookies to ensure you get the best experience on our website. Please review your cookie settings before you continue.

For more information please see our Privacy Policy.