Finance and insurance solutions Global Index Insurance Facility (GIIF)

Funded by the European Union and the ACP countries together with Germany, Japan and the Netherlands, GIIF has facilitated more than 13 million contracts covering about 65 million people, primarily in sub-Saharan Africa, Asia, Latin America and the Caribbean (2010–2021). Through its Africa Inclusive Insurance Program, GIIF aims to provide cover against climate risks for another 25 million smallholders and agri-MSMEs.

GIIF supports the expansion of agricultural insurance to protect vulnerable people against extreme weather events. It facilitates access to finance for smallholder farmers, micro-entrepreneurs and microfinance institutions through the provision of disaster risk transfer solutions and index-based insurance. Disbursements under this type of insurance are not based on the actual losses incurred by an individual but on a predefined weather index (such as a certain temperature or amount of rainfall).

GIIF's strategy for building index insurance markets is based on a comprehensive approach:

1. Financial education. Public education on, and media promotion of, index insurance for farmers, small businesses, microfinance institutions, banks, distributors, and other interested parties.
2. Capacity building and subsidies based on grants to research institutions, brokers and non-governmental organisations to support training of local insurers and financial institutions and to carry out feasibility studies.
3. Technical advice on products and pricing from GIIF team specialists and partners.
4. Public policy dialogue at national and regional levels to establish the requisite political and legal environment for agricultural index-based insurance products.