The agriculture sector in Zambia contributes to the livelihoods of more than 70 percent of the population. Additionally, about 66 percent of the labor force in Africa is engaged in agriculture.
Smallholder farmers account for at least 80 percent of all food production in the region. These farmers are essential for food security, livelihoods, and social stability in rural areas. However, they often have limited capacity to cope with shocks. Therefore, promoting the development of agricultural index insurance to mitigate key risks is highly relevant.

Building on its vision to enhance food security, GIIF hosted an Index Insurance training for insurance practitioners in Lusaka, Zambia, from November 21–22, 2024.

The primary objective of the training was to enhance understanding of agricultural index insurance and facilitate the exchange of knowledge and experiences across different markets.

A total of 40 senior- and mid-level practitioners from Zambia and Zimbabwe attended the workshop. Various insurance and reinsurance companies, brokers, the Pensions and Insurance Regulatory Authority (Zambia), and the Insurance and Pensions Commission (Zimbabwe) were represented.

The training covered key topics such as:

• Types of agricultural risk
• Obstacles to agricultural insurance development
• Types of index insurance
• Use of index insurance in managing risk in the agricultural sector and beyond
• Data requirements for agricultural index insurance
• Product design, including the evaluation of different design alternatives, and pricing

The training employed a mix of case studies, group discussions, and practical exercises to facilitate understanding of different models that could be applied in the Zambian and Zimbabwean contexts.

The training event was a success, with 90 percent of participants expressing satisfaction. Overall feedback was positive, with many participants reporting a significant increase in their understanding of index insurance and appreciating the practical approach and interactive nature of the sessions. They also found the content highly relevant to their specific tasks within the market.

One area suggested for improvement was to extend the duration of future training events, as the two-day period was considered too short. After the training, all participants received a certificate of participation.

From left to right: Yizaso Musonda (Manager, Market Development, Insurance at PIA), Sibongile Siwela (Director of Insurance and Microinsurance, IPEC), Dr. Brian Manchishi (Deputy Registrar, Insurance at PIA), Peter Wrede (Consultant, IFC), and Sharon Onyango (Project Lead, IFC)