The African Reinsurance Corporation (Africa Re), in partnership with the International Finance Corporation (IFC), today opened a three-day workshop to address the critical gap in agricultural and climate insurance solutions. Climate risks leave millions of African farmers vulnerable to climate change and threatens regional food security. The event brings together regulators, insurers, finance institutions, and technology innovators from across the continent to forge actionable strategies for scaling up climate and agriculture insurance.
The workshop directly confronts a critical threat to East Africa’s food security and economic stability. While agriculture is the backbone of the region’s economy, its growth is severely hampered by increasing climate shocks. This vulnerability is magnified by a stark insurance gap: less than 2% of farmers in Africa, and under 1% in Kenya, have coverage. This lack of a financial safety net blocks farmers from accessing credit, stifles investment in better technology and seeds, and ultimately traps rural communities in cycles of poverty. The forum is designed to tackle these challenges head-on by accelerating the development of affordable, tech-driven insurance solutions that can finally reach millions of smallholder farmers.
“Together, we must shift agriculture insurance in Africa from being perceived as pilot or donor-driven initiatives to becoming a mainstream, sustainable line of business that protects farmers and supports food security,” said Dr. Phocas Nyandwi, in the opening address. “As Africa Re, we reaffirm our commitment to provide the reinsurance capacity, technical knowledge, and convening power to help these markets thrive. This workshop is a call to action to learn from each other, strengthen partnerships, and chart a clear course forward.”
Throughout the workshop, participants will explore best practices in underwriting, digital distribution, and product design, drawing on successful public-private partnership models from Kenya, Rwanda, Senegal, and Nigeria. Africa Re and its partners will share technical expertise on developing innovative solutions like parametric insurance, which enables faster payouts based on weather data, and leveraging mobile technology to reach remote farming communities. The goal is to generate concrete commitments from stakeholders to expand insurance access, improve data for risk modelling, and create policies that foster market growth.
For private capital to flow into agriculture, investors need certainty. Climate insurance provides that certainty,” said Sanjay Kalpage, Senior Financial Specialist at IFC. “Our focus is on catalysing the market by supporting the creation of innovative, private sector-led insurance solutions. When we successfully de-risk the farmer, we de-risk the entire value chain. This partnership with Africa Re is critical to building that foundation, unlocking investment, and ensuring East Africa’s agricultural sector can not only survive but thrive in a new climate reality.”
The workshop will culminate on Thursday, November 6th, with a field visit to the front lines of East Africa’s agricultural sector. Participants will tour a horticulture farm in Kiserian and a beef ranching operation in Athi River, offering a first-hand look at the climate risks impacting food production. The visit is designed to make the urgent need for effective risk management solutions tangible, showcasing where innovative insurance can build resilience for farmers and fortify the region’s food supply.
