17 November 2022
COP27 Webinar: Strengthening farmers’ resilience through climate risk insurance
"Who pays for climate risk insurance?" is a simple question -- but it has many answers. In the Global South, governments face budget constraints and smallholder farmers have limited resources, particularly at the start of the season when premiums are payable. This panel discusses the pros and cons of subsidising insurance premiums, presenting experiences with different payment models, including private sector pre-financing and other opportunities.
Your Virtual Cold Chain Assistant’s Climate Finance and Adaptation Specialist, Celina Schelle, recently presented at The International Fund for Agricultural Development’s (IFAD) webinar on enhancing farmers’ resilience through climate risk insurance at COP27. During the event, she highlighted the transformative capabilities of digital solutions, specifically our Coldtivate app, in facilitating the provision and distribution of climate insurance for smallholder farmers.
During the panel discussions, important considerations were highlighted regarding the adoption of climate risk insurance by smallholder farmers. These discussions shed light on key conditions that can facilitate the uptake of such insurance, including the following points:
- Firstly, integrating insurance mechanisms into existing products or services was emphasised as a practical approach. This integration would allow farmers to access insurance coverage conveniently and seamlessly.
- Secondly, collaboration with local leaders and organisations emerged as a crucial factor in creating awareness and fostering understanding among farmers about the benefits of climate risk insurance. By working together, these stakeholders can effectively communicate the value of insurance and address any misconceptions or barriers.
- Thirdly, establishing an enabling ecosystem involving both public and private sector stakeholders is essential. Such collaboration would help mitigate risks and reduce costs faced by farmers, ensuring the availability and affordability of climate risk insurance.
We express our gratitude to IFAD for providing us with the opportunity to present Your VCCA, which aligns with the aforementioned entry points. The solution has been instrumental in expanding access to decentralised cooling in India and Nigeria through the implementation of the servitisation business model. Moreover, by utilising physics-based modelling, Your VCCA empowers farmers to track the shelf-life of their crops during storage. This knowledge enables them to make well-informed decisions regarding the optimal timing and location for selling their produce.
We invite you to watch the recorded discussion. If you have any questions or would like to engage in further conversation, please don’t hesitate to reach out to us at info@yourvcca.org. We look forward to hearing from you and continuing the dialogue on this important topic.
