2021 Reports

Agricultural Insurance and Climate Change Adaptation in Rwanda: Evidence from the Eastern Province

Dale, Lisa Allyn

Agricultural insurance is increasingly seen as a vital tool for buffering smallholder farmers from impacts associated with climate change. Persistently low levels of insurance uptake in developing countries, combined with slim economic margins for private sector viability, has meant public sector involvement through subsidies and other forms of government support. In Rwanda, the new National Agricultural Insurance Scheme (NAIS) reflects both national awareness of rural vulnerability and an ambition to empower farmers to better withstand climate-related shocks. This pilot research sought to better understand the perspective of the farmers themselves, through semi-structured interviews with both insured and uninsured households. Results suggest a critically important role for farmers’ cooperatives in rural Rwanda, bringing farm households together to share information and maximize economies of scale. Persistent barriers to broader uptake include low levels of awareness in rural areas, un-affordable policies, and expectations for payouts that cannot be met by companies.