Aon, the global re/insurance broker, has collaborated with the African Development Bank (AfDB), Africa’s premier development finance institution, and Amini, an innovator in space technology and artificial intelligence, to increase crop insurance capacity across Africa, support smallholder farmers’ resilience and accelerate the use of nature positive practices.
The additional anticipated benefits will include a reduction of supply chain risks for the food and beverage sector, as well as new opportunities for the expansion of global agricultural value chains.
The collaboration aims to leverage first-of-its-kind, farm-level data produced by Amini that is intended to enable Aon’s support of the African Development Bank’s Africa Climate Risk Insurance Facility for Adaptation, to develop innovative de-risking solutions and build capacity to assess and monitor the changing risk environment across the continent.
The companies explain that the data provided will enable farmers to make better-informed decisions leading to greater resiliency and yield improvements.
The collaboration also aims to help Aon clients with extensive supply chains or balance sheet exposure to the agricultural sector to manage the multi-faceted impacts of climate risk better.
Eric Andersen, President of Aon, commented, “Aon is at the forefront of transformational innovation, supporting our clients as they face increasing, interconnected climate risks.
“Risk capital is a vital component of the climate transition and insurance stakeholders needs to innovate faster to address the world’s rapidly changing needs. Our collaboration with the African Development Bank and Amini is a perfect example of a more holistic approach to risk.”
According to the African Development Bank, Africa houses 65% of the world’s uncultivated arable land. Yet the OECD reports that Africa only accounts for 3% of global GDP.
The lack of environmental data has prevented the expansion of agricultural crop insurance, stunting the growth of the agri-food sector, and preventing climate adaptation through regenerative farming practices.
Beth Dunford, Vice President of the African Development Bank, added, “The Africa Climate Risk Insurance Facility for Adaptation is a model of how strategic collaborations can significantly advance our efforts in climate risk management and agricultural sustainability.
“Aon’s global experience in risk management, combined with Amini’s technological innovation, forms a strong alliance that supports the Bank’s vision for a resilient agricultural sector capable of withstanding and thriving amidst the challenges posed by climate change.”
Kate Kallot, Founder and Chief Executive Officer of Amini, said, “Our collaboration with Aon will help strengthen and accelerate our platform deployment with world-leading companies driven to improve their sustainability practices, while reinforcing the resilience of their extensive supply chains.
“Together, we have a unique opportunity to kickstart positive feedback loops which will transform global food systems and support the regeneration of natural capital at scale.”
