4th Inclusive Insurance Innovation Lab (iii-lab)

Armenia is at the forefront of developing inclusive insurance solutions for its agricultural sector. A recent study involving over 130 farmers across the country revealed that while 90% experienced crop damage due to environmental factors, only 29% had insurance coverage despite available subsidies.
 

To address this critical gap, a prototype called ArmAgro is being developed as part of the iii-lab initiative. This web-based platform aims to:
💡Enhance farmers' knowledge of climate-smart agricultural practices through collaboration with Armenian universities and innovation hubs.
💡Raise awareness about the benefits of insurance coverage.
💡Foster a new generation of resilient farmers.
 

Nepal faces challenges in providing adequate insurance coverage for its farmers. Initial interviews involving 26 farmers cultivating primarily cereals and vegetables revealed that while these crops are vital to the nation's agriculture, insurance products are predominantly focused on cattle. This gap is attributed to a lack of understanding about crop insurance and affordability concerns.
 

In response, the iii-lab team from Nepal are developing the following innovative solutions: 

1. 💡 Interactive Voice Response System (IVRS): This phone-based system will provide farmers with standardised information on climate risks and crop insurance options in their local language.

2. 💡Product Development Exploration: The team is exploring two options:

• An index-based agricultural insurance product leveraging satellite technology
• Bundled insurance products to increase the value added for farmers

By addressing these challenges, Nepal is laying the groundwork for a more inclusive and resilient agricultural sector.

Senegal’s rich fishing industry is a cornerstone of its economy and culture. Recognising the vulnerability of fishers to adverse weather conditions, the iii-lab country team is proposing an innovative index insurance product to protect their income.

To implement this solution, they are concentrating on three key areas:
💡Technology Integration: Introducing geolocation services and devices to accurately monitor weather conditions and fishing activities.
💡Public-Private Partnership: Establishing a collaborative framework involving government, private sector, and fishers, including training and financial literacy programs.
💡Effective Communication: Enhancing information sharing through the involvement of NGOs, technical and financial partners, and fishermen's organisations.

By combining these elements, Senegal aims to create a robust and inclusive insurance product that safeguards the livelihoods of its fishermen.

Current and past iii-lab participants landed in Frankfurt for the iii-lab international incubator event which kicked off, bringing together alumni from labs 1-3 with current lab 4 participants for the first time. After a welcome activity, teams from lab 4 participated in a joint Lego-building session designed to highlight the importance of collaboration.

The opening session included welcoming words from Peter Braumüller, Chair of the A2ii Governing Council, Angelika Frei-Oldenburg, Head of Sustainable Economic and Financial System Transformation Cluster at GIZ, and Teresa Pelanda, A2ii iii-lab project manager.

Following was an alumni stories panel with representatives from Labs 1-3 from Argentina, Costa Rica, Grenada, Kenya, Morocco, and Zimbabwe, who shared their experience with the lab, the results of their prototypes, and advice with current lab participants and invited guests. Then, each alumni hosted a “learning circle” in small groups discussing topics such as:  

💡 Private sector and industry collaboration

💡 Role of supervisors working

💡 How do you develop a model product?

💡 Focusing on beneficiaries and human-centred design (the ResilientME! game)

On the third day, alumni acted as coaches for the current country teams from Armenia, Nepal, and Senegal, helping them to refine their prototype ideas as they worked in groups and prepared their presentations for a “Dragon's Den” style pitching session to a panel of four experts - Laura Schäfer, Matthias Range, Martina Wiedmaier-Pfister, and Manoj Pandey.

This international incubator event has allowed lab participants and alumni to continue to build the lab community, support each other, and learn from each other. As one alumni said, “It is notable that, despite cultural, linguistical and regional differences, there is a common focus on identifying needs, developing innovative solutions and protecting vulnerable populations through insurance education and the creation of affordable, accessible and sustainable products.”

Coming up next, the implementation process will begin, wherein country teams will start experimenting, testing and implementing the newly developed prototypes in the real world. They will each have a national in-person ecosystem event to present their prototype to the wider national ecosystem, and international sessions will be held where they will receive feedback from their peers.

The international cohort of the fourth A2ii Inclusive Insurance Innovation Lab (iii-lab) has successfully concluded the discovery phrase, the first of three phases in the lab process. 

Building on the momentum generated by national workshops held in February, each of the country teams from Armenia, Nepal, and Senegal engaged in extensive interviews with their target groups in the agricultural sector, mostly farmers and fishers, in order to identify the main challenges these groups are facing in the light of climate change. 

These interviews were the basis for discussions during the international calls. Each country presented a creative Pecha-Kucha presentation, not only providing some insight on their rich cultural heritage but also diving into the state of insurance and climate risk within their respective jurisdictions. As they presented their findings, similarities and unique nuances among stakeholder perspectives emerged.

The interviews underscored a pervasive lack of trust in and understanding of insurance benefits among agricultural communities. Furthermore, there was an awareness of the immediate impacts of climate change on livelihoods across all regions, as encapsulated by an interviewee from Nepal: “As per my estimation, climate change has decreased my production by roughly 20%”.

However, distinct differences also surfaced: Senegal emphasised the importance of in-person distribution channels, while Nepal identified significant potential in digital distribution platforms. Armenia highlighted opportunities in leveraging smart farming appliances for data collection and greater resilience.
 

The interviews catalysed a shift in perceptions and prompted new inquiries, such as:

• how to ensure the livelihoods of rural populations beyond traditional farming or fishing occupations,

• how to deliver innovation effectively, and

• how to address the specific needs of vulnerable groups. 

As teams transition into the innovation phase, each country team will leverage the insights gained from this collaborative exchange to propel their respective initiatives forward. The stage is set for further collaboration and refinement as teams will convene in-person at the end of July.
 

The A2ii Inclusive Insurance Innovation Lab (iii-lab) successfully held its first national workshop in Armenia over two dynamic days, 13 and 14 March, hosted at the Central Bank in Yerevan. Esteemed speakers including Mr Hovhannes Khachatryan, Deputy Governor of the Central Bank of Armenia, Katrin Buder-Pelz, Head of German Development Cooperation at the German Embassy, and Madeleine Rauschenberger, Country Director for GIZ Armenia, marked the opening with insightful remarks.

The workshop brought together a diverse multi-stakeholder team from the Central Bank of Armenia, various ministries, the industry sector, academia, and civil society. The participants engaged in fruitful discussions about the current landscape of inclusive insurance in Armenia and explored innovative opportunities for enhancing climate resilience through the lab process.

In response to the pressing challenges posed by climate change, the country team pinpointed the agricultural sector and low-income populations as critical areas of focus. The team committed to raising insurance awareness and capitalising on Armenia's advanced digital landscape. They also underscored the vital role of incorporating feedback from the demand side into the innovation process. 

The 4th iii-lab is a 12-month journey where teams from Armenia, Nepal and Senegal, consisting of key stakeholders from the insurance sector, are collaborating on innovative insurance solutions to increase resilience against the impact of climate change. For more information on the iii-lab, click here.

The inaugural National Workshop of the 4th iii-lab for Nepal was held in Kathmandu on 28-29 February. Mr Raju Raman Paudel, the Executive Director of the Nepal Insurance Authority (NIA), and Ms Paulina Campos, GIZ Nepal Deputy Country Director, inaugurated the workshop.

Various stakeholders from the agriculture insurance sector, including regulators, insurance and reinsurance entities, InsurTech companies, a national farmers’ cooperative, the country’s climate and disaster risk reduction and management authority, and international organizations attended the workshop.

During the two-day event, participants exchanged ideas on climate change impacts on Nepali agriculture and discussed potential solutions to address farmers' protection issues. Parametric insurance was a focal point, with recognition of existing challenges in convincing stakeholders, including farmers, of its value in enhancing agricultural sector resilience. Despite skepticism, the team remains committed to finding solutions.

Following the workshop, the team agreed to focus on specific sectors such as rice, grains, maize, and other vegetables, conducting interviews with farmers and stakeholders in these sectors. Subsequent lab meetings will determine the sector of focus and the geographical location for pilot efforts.

Mr Surya Prasad Silwal, Chairman of the Nepal Insurance Authority, formally closed the workshop. In his closing remarks, Mr Silwal expressed gratitude to A2ii for including Nepal in the 4th edition of the lab and expressed confidence in the team's output, anticipating it would serve as a replicable model for other agriculture centers in Nepal.

On 14-15 February, the first national workshop of the 4th iii-lab took place in Dakar, the capital of Senegal. The workshop was opened with remarks by Mr Mamadou Deme, Director of Insurance at the Ministry of Finance and Budget of Senegal, and Mr Rogier Hekking, Deputy Ambassador of the Netherlands.

The two days were filled with both concentrated discussion and personal exchanges within the national multi-stakeholder team, consisting of representatives from ministries, including the insurance regulator, brokers, industry, consumer associations, civil society, and international organisations.

The participants not only brought their diverse institutional backgrounds and knowledge to the table, but shared their unique perspective on the impact of climate change and the various ways inclusive insurance can protect the most vulnerable segments of the population. As one of the lab participants put it, “In 10 years, maybe we can say that we were an important part of creating the protection that everyone can have in Senegal today.”

To address the impact of climate change in Senegal, the group decided on an initial focus on the vulnerable segments of the population such as smallholder farmers, fisherfolk, and garbage collectors. They also chose to include a gender focus and examine how insurance regulation can support innovative and inclusive solutions to increasing resilience. Following the workshop, the national team will split into smaller working groups to map the stakeholder landscape and use interviews to further define the scope of their project.

Congratulations to all three selected country teams from Armenia, Nepal and Senegal! 

Each multistakeholder country team will be embarking on a one-year journey to develop innovative solutions to increase resilience of the most vulnerable segments in their societies against the impacts of climate change. 

In the coming weeks, insurance supervisors from the three selected countries will start the convening process to put together their multistakeholder country teams. In early 2024, the teams will come together for the first iii-lab workshops to develop innovative solutions guided by the question: How can you innovate for achieving climate resilience in your jurisdiction?   

Once again, we are happy to partner with Reos Partners for the facilitation of the programme.  

See the announcement on LinkedIn.