Policies, regulations and financing instruments

Defining the role of government in market dynamics

Agricultural insurance is an extraordinary force for development. It protects vulnerable individuals, creates economic opportunities and incentivizes investments in climate adaptation. To fulfil this potential, agricultural insurance must be integrated into development frameworks and requires supportive policy environments. Governments can support market actors both by institutionalizing agricultural insurance agendas and better defining the role of government in local markets.

Building the right environment for agricultural insurance markets to develop

The Financial Resilience in Agriculture Initiative is helping governments understand the value of agricultural insurance in achieving their development outcomes. Through policy advocacy, capacity-building and technical assistance, the Initiative is leading efforts to revise regulations and policies. It is supporting the design and implementation of national agricultural insurance programmes, conducting cost-benefit analyses of subsidy schemes and exploring financing instruments for scaling opportunities. This work is tailored to ensure each government is equipped to develop the best possible mix of policies and programmes for local agricultural insurance markets to succeed.

The Initiative identifies and works with local champions, including from ministries of agriculture, finance and the environment, as well as local governments and regulatory authorities, to lead the institutionalization process within each actor’s own area of influence.