On October 14, 2024, nearly 1,800 smallholder farmers in Goromonzi, Zimbabwe, celebrated a significant milestone as they received their first insurance payout under the Agricultural Index Insurance Pilot Project. This payout came in response to the severe El Niño-induced drought that impacted the 2023/2024 farming season, leading to dramatically reduced crop yields across the region. Each farmer, received a payout of US$65 under the Farmer’s Basket Insurance Product, specifically designed to mitigate financial risks stemming from climate-related disasters. The success of this initiative was

In an era marked by escalating climate challenges and food insecurity, the need for innovative insurance solutions has never been more pressing. The German Federal Ministry for Economic Cooperation and Development (BMZ) and the Global Shield Against Climate Risks initiative are among the most vital entities enabling these solutions through their financing, helping advance farmers’ resilience through the World Bank Group’s Global Index Insurance Facility (GIIF) Program. BMZ supports smallholder farmers through microinsurance, while the Global Shield—an extension of Germany’s InsuResilience

On October 4th, 2024, the United Nations Development Programme (UNDP) and Generali Global Corporate & Commercial launched their collaborative report, Parametric Insurance to Build Financial Resilience . The report highlights the potential of parametric insurance to provide governments, businesses, and communities with the financial tools necessary to navigate an increasingly unpredictable climate, marked by severe natural hazards such as droughts, extreme heat, and tropical storms. With an alarming US$1.8 trillion protection gap, showing the difference between insured and uninsured losses, the

The GIIF program conducted a comprehensive evaluation spanning 2016-2022 across various countries to assess its implementation and gather insights. This evaluation aligned with the six main criteria of the OECD Development Assistance Committee (DAC): relevance, coherence, effectiveness, efficiency, impact, and sustainability. The objective was to gain a holistic understanding of achievements and shortcomings, with a focus on informing future expansion and activities crucial for sustainability. The team looked at multiple countries in Africa and Asia, mainly Kenya, Senegal, Nigeria, Zambia

On June 14, the workshop 'Inclusive Insurance: Accelerating Gender Equality in Emerging Markets', a collaborative effort by MIGA, IDF, and The Geneva Association brought together stakeholders committed to advancing gender inclusion in the insurance sector. The session titled “ Gender Equality and the Importance of Climate and Disaster Risk Finance and Insurance (CDRFI)” shed light on the urgent need to account for gender differences in climate vulnerabilities, stressing the importance of incorporating gender considerations into insurance products and financial services to ensure they address

On 16 April 2024, Senior Representatives of the V20 Finance Ministers from the Climate Vulnerable Forum (CVF), representing 68 climate-vulnerable developing countries, during the Spring Meetings of the International Monetary Fund (IMF) and the World Bank Group. In their communique, titled " Unlocking Growth and Prosperity through Innovations in Climate Finance and Debt," called for major reforms of the international financial system to advance innovative financial strategies to drive growth and address the disproportionate impact of climate change on vulnerable developing countries. The group

In the field of climate risk insurance, gender integration plays a crucial role in addressing the unique challenges women face. According to IFC report estimates, women represent a significant market opportunity for insurance premiums, projected to be between US$1.45 and US$1.7 trillion by 2030. Since its inception, GIIF has facilitated the issuance of over 14 million agricultural insurance policies to date, reaching nearly 70 million beneficiaries globally. It is estimated that 30-35 million of these beneficiaries are women, given that the program focuses on serving subsistence farmers, the

This blog highlights IFC's critical role in supporting climate risk insurance products through collaborative efforts between its Advisory and Investment teams, other development partners and public-private stakeholders. It features a project example involving various levels of engagement within the WBG, which started from a pilot in 2010 and led to an investment in 2024. In 2010, the World Bank Group's Global Index Insurance Facility (GIIF) program started providing technical assistance and capacity building support to Kilimo Salama (KS), an index-based microinsurance product developed jointly

The Democratic Republic of Congo (DRC) is at a pivotal moment in its agricultural history, as innovative initiatives begin to reshape and empower its agribusiness sector. Among these transformative efforts, the GRECOM-RDC (Green Community Mind) initiative stands out as a remarkable example, illustrating the extraordinary potential of sustainable agriculture in the region. Driven by a passion for ecological balance and economic growth, this initiative has ushered in a new era for DRC's agricultural practices. By leveraging cutting-edge technologies and sustainable methodologies, GRECOM-RDC

Climate change poses a significant threat to global economies, with fragile and developing countries being particularly vulnerable. Recent research shows that these nations experience a disproportionate impact, with cumulative GDP losses of around 4% three years after extreme weather events, compared to 1% in other countries. Specifically, droughts in fragile states annually reduce per-capita GDP growth by 0.2 percentage points, emphasizing the urgent need for action to address the challenges faced by vulnerable countries. The Global Index-Insurance Facility (GIIF) is at the forefront of