[Event Recap] Session 3: Market-Based Instruments for Climate and Disaster Risk Financing for Agriculture

The third webinar in the Global Knowledge Exchange on Agriculture Risk Finance Webinar Series "Market-Based Instruments for Climate and Disaster Risk Financing for Agriculture" was held on December 12, 2024. The 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). 

The third webinar discussed market-based instruments and the role of the private sector in climate and disaster risk financing for agriculture. It explored various types of programs implemented at different stages and in diverse contexts and discussed opportunities and challenges in implementing and scaling these solutions. In the opening remarks, Sifong Oumavong (Deputy Director General, External Finance Department, Ministry of Finance, Lao PDR) reflected on the discussions in the second webinar held in November 2024, highlighting the government’s role in facilitating the effective implementation of agricultural risk financing programs, especially the importance of balancing government support with long-term private sector investment for program sustainability. She also touched on the ASEAN+3 region’s journey for building financial resilience against the growing risk posed by climate shocks through joint efforts. Furthermore, she emphasized the urgency of strengthening sustainable and resilient agricultural sectors and rural livelihoods worldwide through collaboration, learning, and knowledge exchange.  

Following the opening remarks, Radu Tatucu (Senior Financial Sector Specialist, Crisis and Disaster Risk Finance, World Bank Group) delivered the framing presentation, setting the stage by addressing the key aspects of market-based instruments in agricultural risk financing, including what they are, why they are needed, and how they can be scaled while also considering the opportunities and challenges involved. He emphasized the importance of leveraging the private sector's capital and expertise to create impactful and sustainable agricultural risk financing mechanisms.

The framing presentation was followed by four in-depth case study presentations, Agrobank from Malaysia, AgroSeguro from Spain, DRIVE from the Horn of Africa, and SEADRIF from Southeast Asia, all of which discussed unique country and regional experiences in leveraging market-based instruments for agricultural risk financing in their respective contexts.

1. Agrobank (Malaysia): Encik Mohamad Taufik Mahamad Zakaria (Chief Strategy Officer, Agrobank) shared insights into their journey in implementing the paddy crop takaful scheme, from conception to execution, highlighting its innovation and benefits for the government to collaborate with the private sector to protect farmers against disasters.

2. AgroSeguro (Spain): Elsa Sánchez Elizo (Strategy and Corporate Governance Manager, AgroSeguro) presented Spain’s distinctive public-private partnership model, where private insurers come together through the pooling arrangement for greater efficiency in capital and management capabilities, bolstered by government support and active participation from agricultural producers and farmers.

3. DRIVE (the Horn of Africa): Megerssa Miressa (Country Manager, DRIVE Ethiopia, ZEP-RE (PTA Reinsurance Company)) elaborated on how their innovative approach in the Horn of Africa enables the bundling and distribution of financial services for pastoralists through networks of private and public sector agents, leveraging value chains and digital technology for delivery.

4. SEADRIF (Southeast Asia): Ellen Yong (Chief Operating and Financial Officer, SEADRIF Insurance Company) introduced the unique case study of SEADRIF, a regional risk sharing mechanism, and its potential value in scaling up agricultural risk financing solutions across the region, highlighting how it can enable participating countries to benefit from financial efficiencies and technical expertise.

The webinar concluded with remarks from Ilias Skamnelos (Practice Manager, Finance, Competitiveness and Investment Global Department (East Asia and the Pacific), World Bank Group), who highlighted the importance of enabling and mobilizing private capital for development, driving inclusion as part of agricultural risk financing, and drew attention to the upcoming final session in this webinar series to further build on the insights shared.

The event, facilitated by Hang Thu Vu (Senior Financial Sector Specialist, Finance, Competitiveness and Investment Global Department, World Bank Group), saw 350+ registrations and was attended by 200+ participants, including practitioners and policymakers from 75+ countries.

Resources:
Click the below links to download/view the webinar:

• fact sheet (coming soon)
• presentation
• video recording

Visit the Webinar Series resource page to download content from earlier webinar.

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