WFP-Supported Climate Risk Insurance Program Payments: Safeguarding Food Security Through Financial Protection of the Most Vulnerable (November 2021) – Malawi
WFP puts climate risk insurance solutions at the service of food insecure populations. In 2021, three major payments were triggered in countries with WFP-supported insurance programs that will help people and governments recover from climate impacts.
Climate risk insurance enables vulnerable people to cope with climate shocks – helping smallholder farmers cope with the effects of crop failures, and governments and humanitarian agencies to launch well-coordinated and effective responses. When integrated with other risk management strategies such as nature-based protection, communal savings plans or social safety nets, insurance solutions offer significant protection against potentially catastrophic events. which can lead to loss of livelihood. Microinsurance makes payments to smallholder farmers in times of crisis, allowing them to purchase food and continue to invest in agricultural inputs or animal feed. Sovereign insurance solutions enable governments and WFP to fund and initiate early humanitarian responses to climate shocks. In 2021, three major payments were triggered in countries with WFP-backed insurance programs that will help people and governments recover from climate impacts.