Global Parametrics (GP) and One Acre Fund have partnered with international insurance group, Howden, to bolster its parametric protection scheme in Rwanda this year.
Howden has provided premium subsidy to support the expansion of this scheme in the country, allowing One Acre Fund to purchase more coverage and extend its assistance to more smallholder farmers vulnerable to extreme weather risks.
Since 2020, GP has been working with One Acre Fund in Tanzania on a parametric solution for excess rain and drought risk, with payments intended to fund financial protection measures to farmers.
The solution is backed by the Natural Disaster Fund, a public-private partnership managed by Global Parametrics with seed investment from the UK’s Foreign, Commonwealth and Development Office and Germany’s BMZ via KfW, with global reinsurer Hannover Re providing matching capacity.
Angus Kirk, CEO of Global Parametrics commented: “We are delighted to be partnering with Howden and continuing to strengthen our relationship with One Acre Fund as we strive to address extreme weather and natural hazard risk in climate vulnerable countries. We hope this to be the first of many collaborations with Howden, and we look forward to making a positive impact together in the communities we serve.”
The programme currently benefits almost 175,000 smallholder farmers in Tanzania and Malawi, a country introduced to the program in 2022.
The inclusion of Rwanda will protect a further 800,000 people, providing access to financial protection and resources to help farmers mitigate the impacts of extreme weather and improve livelihoods through One Acre Fund loan protection.
David Howden, Chief Executive Officer, Howden said: “We are proud to support this impressive programme – a great example of how insurance can help vulnerable communities to build resilience and have the confidence to invest in their own future.
“We hope to see initiatives like this play a much larger role in the global response to climate crises. To achieve this, we must bring private finance to the table in a much bigger way to enable those facing the worst impacts of climate change access the same financial instruments that most companies take for granted.”