[Event Recap] Session 1: Climate and Disaster Risk Financing for Agriculture: Policy, Legal, and Institutional Considerations | Global Knowledge Exchange on Agriculture Risk Financing
The Global Knowledge Exchange on Agriculture Risk Finance Webinar Series was launched on October 30, 2024, by the World Bank Group’s Disaster Risk Financing and Insurance Program in partnership with the ASEAN+3 Disaster Risk Finance Initiative, ASEAN Secretariat and Southeast Asia Disaster Risk Insurance Facility (SEADRIF). This knowledge series builds on the success of the last two Disaster Risk Financing for Agriculture (DRFA) Knowledge series – Strengthening Financial Resilience in Agriculture Knowledge Series delivered in 2021-2022 (click here for more information) and the Knowledge Series on Disaster Risk Financing Solutions for Climate-Resilient Livelihoods in the Agricultural Sector delivered in 2023 (click here for more information). The series aims to: (i) increase the understanding and capacity of participants to design and implement DRFA programs by filling the knowledge gap and enhancing knowledge exchange among participants; and (ii) foster collaboration among countries by exploring potential regional and country-level solutions to address climate and disaster risk finance challenges.
The first webinar in the series of four webinars "Climate and Disaster Risk Financing for Agriculture: Policy, Legal, and Institutional Considerations" focused on discussing the concept and importance of Disaster Risk Finance for Agriculture (DRFA) within the broader risk financing context, and exploring policy, legal and institutional consideration for designing CDRFA frameworks and sharing country experiences and lessons learnt in operationalizing these frameworks. In the opening remarks, Francesco Strobbe (Practice Manager Finance, Competitiveness and Innovation, East Asia and Pacific, World Bank Group) and Yoshihiro Kawai (SEADRIF Initiative Director cum Secretary General, ASEAN+3 Disaster Risk Finance Initiative) highlighted the timeliness and importance of the Global Knowledge Exchange on Agriculture Risk Financing, particularly in the context of intensifying natural disasters worldwide. These speakers emphasized the important role of agriculture in economies as a source of livelihood and employment, its contribution to GDP, food security and global value chains. They also gave emphasis to the sector's vulnerability to disasters and climate risks and the crucial role of governments in leading effective DRFA.
Following the opening remarks, Hang Thu Vu (Senior Financial Sector Specialist, Crisis and Disaster Risk Finance, World Bank Group) delivered the framing presentation addressing the key concepts related to DRFA, including disaster risk layering, segmented approaches with tailored financial instruments for different farmer groups, and agricultural risk management mechanisms at household, MSME, market, and government levels. The presentation outlined key considerations for designing effective DRFA frameworks, focusing on policy development, legal and regulatory perspectives, and institutional arrangements.
The framing presentation was followed by three country presentations, Vietnam, Cambodia, and Turkey, which discussed the country experience with design and implementation of DRFA in their respective country context.
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Vietnam: Nguyen Thi Thuy (Deputy Director, Public Finance, National Institute of Finance, Ministry of Finance, Vietnam) elaborated on how the government manages public finances related to agricultural losses from disasters, with examples of using public-funded support schemes and linking to market-based mechanisms such as insurance and credit. In addition, Dong Phuong Mai (Deputy Head, Non-life Insurance Division, Insurance Supervisory Authority, Ministry of Finance, Vietnam) presented Vietnam's experience in agricultural insurance, touching on the institutional coordination among various stakeholders and their challenges. The Vietnam presentations explained the country’s strategy that combines public funding and market mechanisms to build a robust agriculture disaster risk management framework.
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Cambodia: Som Phay (Deputy Secretary General, General Secretariat, Non-Bank Financial Services Authority, Cambodia) delved deep into Cambodia's approach to integrating DRFA within the national DRF strategy and demonstrated how DRFA connects with broader disaster risk reduction and climate adaptation initiatives while supporting integrated agricultural sector development.
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Turkey: Ramazan Küçükolgun (Assistant Insurance Specialist, Insurance and Private Pension Regulation and Supervision Authority (IPRSA – SEDDK), Turkey) introduced the journey that Turkey has taken to build comprehensive frameworks for agricultural insurance, including the integrated policy and institutional frameworks as well as the successful implementation of public-private partnership in agriculture insurance.
The presentations were followed by an engaging question-and-answer session. The discussions highlighted three critical dimensions of DRFA: success factors for sustainability, implementation challenges, and approaches to private sector engagement in agricultural insurance programs. The webinar concluded with remarks from Emiko Todoroki (Acting Practice Manager, Finance, Competitiveness and Innovation Global Practice, World Bank Group) who highlighted the importance of continued knowledge exchange in upcoming sessions to strengthen agricultural resilience across the world and in the ASEAN+3 region.
The event, facilitated by Sumati Rajput (Senior Financial Sector Specialist, Finance, Competitiveness and Innovation Global Practice, World Bank Group), was attended by over 350 participants, including practitioners and policymakers from around 56 countries.
Resources:
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