Aon, a global re/insurance brokerage firm, has announced its partnership with the African Development Bank (AfDB), and Amini, an innovator in space technology and artificial intelligence, to increase crop insurance capacity across Africa, support smallholder farmers’ resilience and accelerate the use of nature positive practices.
The partnership is also expected to help in reducing supply chain risks for the food and beverage sector, as well as creating new opportunities for the expansion of global agricultural value chains.
According to the deal terms, the collaboration aims to leverage first-of-its-kind, farm-level data produced by Amini that is intended to enable Aon’s support of the African Development Bank’s Africa Climate Risk Insurance Facility for Adaptation, to develop innovative de-risking solutions and build capacity to assess and monitor the changing risk environment across the continent.
The partners explaiedn that the data provided will enable farmers to make better-informed decisions leading to greater resiliency and yield improvements and help Aon clients with extensive supply chains or balance sheet exposure to the agricultural sector to manage the multi-faceted impacts of climate risk better.
Commenting on the collaboration, President of Aon, Eric Andersen, said: “Aon is at the forefront of transformational innovation, supporting our clients as they face increasing, interconnected climate risks.
“Risk capital is a vital component of the climate transition and insurance stakeholders need to innovate faster to address the world’s rapidly changing needs. Our collaboration with the African Development Bank and Amini is a perfect example of a more holistic approach to risk”, the industry expert added.
Available data from the AfDB currently indicates that Africa houses 65% of the world’s uncultivated arable land while the OECD reports that Africa only accounts for 3% of global GDP.
The lack of environmental data has prevented the expansion of agricultural crop insurance, stunting the growth of the agri-food sector, and preventing climate adaptation through regenerative farming practices.
Speaking on the risk-underwriting initiative, AfDB’s Vice President, Beth Dunford, said: “The Africa Climate Risk Insurance Facility for Adaptation is a model of how strategic collaborations can significantly advance our efforts in climate risk management and agricultural sustainability.
“Aon’s global experience in risk management, combined with Amini’s technological innovation, forms a strong alliance that supports the Bank’s vision for a resilient agricultural sector capable of withstanding and thriving amidst the challenges posed by climate change”, the banker added.
In his remarks, Founder & Chief Executive Officer of Amini, Kate Kallot, enthused: “Our collaboration with Aon will help strengthen and accelerate our platform deployment with world-leading companies driven to improve their sustainability practices, while reinforcing the resilience of their extensive supply chains.
“Together, we have a unique opportunity to kick-start positive feedback loops which will transform global food systems and support the regeneration of natural capital at scale”, Kallot projected.
