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  • Publication | 2021

Agricultural and climate risk insurance for smallholder value chains: Identifying common challenges and solutions

Global Food and Nutrition Security

Successful and sustainable roll-out of agricultural and climate risk insurance schemes for smallholder farmers and their value chains is a complex task involving many stakeholders. Many of the challenges or roadblocks that hinder insurance workstreams are common across different countries and contexts. This brief identifies and describes the principal challenges, and outlines possible solutions that development programmes can support. It is aimed at rural and agricultural development projects in the process of identifying potential insurance activities that will strengthen poor rural people’s resilience and their capacity to adapt to climate change. Challenges are identified at three levels: demand for insurance, supply of insurance, and the enabling environment, which includes the policy, legal and regulatory frameworks. The corresponding proposed solutions can be supported by development projects, government, donors, and the financial and agricultural sectors.