Scaling weather-based index insurance across Africa

• Jul 26, 2025
• 1 min

Smallholder farmers across Africa are increasingly becoming more vulnerable to climate-related shocks that threaten their livelihoods and food security. While weather-based index insurance offers a promising solution to help farmers manage weather-induced losses, adoption remains critically low. Many farmers do not fully understand how these products work, which leads to confusion and mistrust, especially during the claim process. Poor customer experiences, limited awareness, and ineffective communication further suppress demand. At the same time, insurance providers struggle to offer compelling value propositions and reach rural clients effectively, which leaves a significant protection gap in farming communities.

To address these challenges and unlock the potential of index insurance, MSC partnered with ACRE Africa to identify and tackle behavioral and structural barriers. We conducted a multicountry diagnosis with the use of a behavioral research to uncover customer pain points and institutional constraints. Based on these insights, we redesigned the customer journey, refined product features, and developed tailored training modules for field agents. We also introduced a village-based product champion model and supported digital outreach strategies to strengthen last-mile engagement.

These improvements contributed to the successful scale-up of weather-based index insurance, which reached approximately 200,000 farmers across ACRE Africa’s network. The initiative helped restore trust in insurance, improve access to climate risk protection, and build resilience among smallholder farmers across the region.

ACRE Africa commissioned this project.