Economic losses due to extreme weather, climate and water events have increased sevenfold from the 1970s to the 2010s.1 Scientists predict that these events, driven by climate change, will only become more common in the years to come— driving significant losses across many sectors of the economy. With economic damages from extreme weather estimated
at more than USD 2 trillion2 over the last decade, risk management tools are more necessary than ever. Low- and middle-income countries are more vulnerable to the impacts of climate change, particularly since a large proportion of their populations depend on climate-vulnerable sectors—such as agriculture and fisheries—for their livelihoods. Agricultural insurance can be a powerful tool to reduce that vulnerability and help smallholder households
adapt to climate change. Recent evidence suggests that even a 1% increase in insurance penetration reduces the disaster recovery burden on developing countries by 22%.3. However, the challenges of developing and delivering agri-insurance to smallholder farmers remain significant. Farmer understanding of insurance is typically low, products can be complex and costly to deliver, and regulatory frameworks
to facilitate the insurance market are often lacking. Multi-sector collaboration, including an active government role, is needed to close the persistent insurance protection gap in these countries

 . Agricultural production and food security have made impressive progress in global South and including Africa  over recent decades. The improvements have played a key role in fueling economic growth. However, climate change and related erratic weather events threaten farmers’ livelihoods, as do pests and diseases.  Poor harvests can prevent farmers from repaying their loans. They are then naturally unwilling to access credit or use modern inputs in the next season. Yields and income, therefore, typically fall again.