Building Farmer Resilience through Responsible Insurance Products and Practices

Smallholder farmers across developing countries face rising climate and market risks that threaten their livelihoods, yet traditional insurance models remain costly and inefficient. Index-based agricultural insurance, which uses data-driven indicators like rainfall or yield levels to trigger payouts, has emerged as a promising alternative but faces persistent challenges of affordability, accuracy, and accessibility. In partnership with the Bill & Melinda Gates Foundation and Qatar Insurance Group’s MENA InsurTech initiative, this project will develop a practical evaluation framework to help investors and donors assess whether agricultural index insurance products are responsibly designed, effectively implemented, and truly beneficial to farmers.

Building on the findings of a previous SIPA Capstone, the team will create a set of actionable questions and analytical tools to evaluate real-world insurance use cases in Ethiopia, Senegal, and Zambia, examining both performance outcomes and operational data. The project will also explore how emerging technologies—AI, blockchain, and digital assets—can improve transparency, reduce basis risk, and enhance product delivery. Through data analysis and stakeholder engagement, students will design a concise provider questionnaire and a case study illustrating how these evaluation tools can be applied in practice.

Deliverables will include a comprehensive report, methodological framework, and presentation materials for the MENA InsurTech Summit. The ultimate goal is to promote responsible insurance practices that strengthen farmer resilience, ensure equitable risk-sharing, and attract sustainable investment in agricultural protection systems—supporting the Gates Foundation’s mission to enable farmers to build secure and productive futures.