Expanding Protection: How Agricultural Insurance Drives Inclusive Rural Finance

🎥 Watch the full recording: 👉 View the session on YouTube 

Introduction:
Agricultural insurance is a critical lever for building resilience. This was the central theme of the 2nd session of this working group, held on July 14, 2025. 

Bringing together experts from public development banks (PDBs), international organizations, and specialized insurance companies, the session explored how insurance can be scaled and integrated into broader financial solutions to protect rural livelihoods and deepen inclusion. 

Setting the Scene
Carolina Trivelli, Principal Researcher at the Institute of Peruvian Studies, opened the discussion by explaining the transformative potential of insurance in rural finance. 

“Insurance isn’t an optional extra—it’s a foundational tool for achieving financial inclusion and resilience in agriculture,” she said. 

Her remarks framed the session around a crucial question: How can PDBs and partners embed insurance into their financial products to reach underserved rural communities? 

Lessons From the Field

Andries Mahlase from Land Bank Insurance Company (LBIC), South Africa, offered a practical perspective. He shared how Land Bank has been designing bundled models that combine credit, inputs, and insurance. This approach, tailored to the realities of smallholder farmers, reduces risks for both farmers and lenders while reinforcing the sustainable mission of a public development bank. 

Tara James, from IFAD’s INSURED Programme, expanded on the global picture. She described how insurance is being integrated into loans and grants across 15 countries, backed by technical assistance and capacity building. 

“Insurance must be participatory, context sensitive, and bundled with other essential services to be effective and equitable,” she emphasized. 

Zeynab K. Cissé of African Risk Capacity Ltd. (ARC) then took participants through ARC’s evolution from sovereign risk coverage to micro and meso level parametric products that directly benefit rural producers. She highlighted a partnership with BOAD that embeds insurance into credit lines across West Africa, demonstrating how innovative risk sharing mechanisms can support both lenders and borrowers. 

Key Takeaways for PDBs

Throughout the discussion, a clear message emerged: agricultural insurance is not just about risk mitigation—it is a catalyst for inclusive finance. 

When insurance products are carefully designed and bundled with credit and advisory services, they: 

• Protect investments, safeguarding farmers and lenders against shocks. 

• Enable productivity, giving farmers confidence to invest in improved practices. 

• Strengthen climate resilience, supporting rural communities in adapting to a changing environment. 

As Carolina Trivelli concluded: 

“Inclusive rural finance must go beyond credit—it must protect the livelihoods of rural families and enable their long term resilience.” 

Looking Ahead

The Working Group session demonstrated the value of peer learning and collaboration among PDBs and their partners. For institutions seeking to expand rural financial inclusion, the integration of agricultural insurance offers a proven pathway to unlock new opportunities while safeguarding those who need it most. 

Interested in joining future Working Group sessions or learning more about integrating insurance into your PDB’s products? Stay connected with the AgriPDB Platform to access resources, case studies, and upcoming events.