Innovative business models

Scaling agricultural value chain resilience

Building viable agricultural insurance markets requires market players to recognize the opportunities for growth and to look beyond pure distribution strategies. Innovative business models can create supply and demand partnerships, allowing insurance companies, brokers and reinsurers to collaborate with actors in the agricultural value chain, including financial institutions and digital platforms. These mutually beneficial relationships can help drive growth for partners in ways that support smallholder farmers with solutions that meet their specific needs.

Supporting market players to roll out effective business models

The Financial Resilience in Agriculture Initiative is helping market players integrate insurance into farmer-focused business models. The Initiative supports the assessment of opportunities to bundle agricultural insurance with climate adaptation services in order to protect investments in the agrifood systems transition.

To test business models with the most potential to build smallholder farmers’ adaptation and resilience, market players are provided with technical assistance and grants. The Initiative is helping the insurance industry develop or redesign their agricultural insurance offerings, facilitating partnerships and synergies with value chain players and helping conduct value chain, gender and operational analyses to ensure smooth and effective service delivery.