Climate Insurance

Wednesday, 27 June 2018 10:34 Written by 


As part of the Regional Adaptation Program for Africa and Food Security (TICAD V. CC), knowledge sharing actions have been put in place with Kenya. The aim was to strengthen the capacity of the staff of the Directorate General of Meteorology (DGM) in the areas of administration and maintenance of ADCON stations, the operation and the constitution of a database of stations automatic weather. Two exchange missions to Kenya to promote the use of climate data. This mission aimed to facilitate the development of climate insurance in Burkina Faso. It was financed by Japan. This initiative exposed Burkina Faso's partners in the collection, management and practical use of climate data and improved planning of climate change-dependent development activities.

The lessons learned from these exchanges allowed Burkina's partners to guide the formulation of their climate insurance initiative in preparation with UNDP and GEF.


 The negative impacts of climate change on agricultural yields and the food security situation in Africa are of concern. Projected yield reductions in some countries could reach 50% by 2020, and net crop revenues could fall by 90% by 2100, with small farmers being the most severely affected. Risks related to weather and climate shocks are critical constraints for rural people who are engaged in agricultural activities or whose livelihoods are highly dependent on the agricultural sector.

Recently, indexed risk transfer products such as index insurance have emerged as a potentially effective climate risk transfer mechanism for rural populations.

ACRE-Agriculture and Climate Risk Enterprise Ltd operates as a for-profit enterprise that has evolved from the Kilimo Salama project (established in 2009) funded by the Syngenta Foundation and the Global Index Insurance Facility (GIIF). ACRE Africa is licensed in Kenya, Rwand, and Tanzania as a service provider working with local insurers and other stakeholders in the agricultural insurance value chain.


UNDP organized from March 30 to April 4, 2015 a study trip to Kenya for the benefit of rural sector structures including agriculture, livestock, environment and the directorate of meteorology. This study trip allowed to exchange with the technical team of Agriculture and Climate Risk Enterprise (ACRE), to exchange with the producers who subscribed to the insurance products, to visit the stations used for the monitoring of the risk and to exchange with the technical services involved in the agricultural risk management process in Kenya. It also allowed to meet and discuss directly with the services involved in the issue of climate insurance, including agriculture and livestock and Weather Kenya.

Through these exchanges, the study trip team was able to:

  • to confront the theoretical vision with the reality of agricultural insurance;
  • to control the mode of operation and operation of a climate insurance for the benefit of the breeders or farmers;
  • acquire the operational process of developing insurance products and monitoring indicators
  • and the main requirements of an agricultural insurance scheme.

Supported by: UNDP

Implementing Agency: Kenya Agriculture and Climate Risk Enterprise (ACRE)

Herve Kouraogo,
Economics Specialist,
UNDP Burkina Faso,
This email address is being protected from spambots. You need JavaScript enabled to view it.

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