Inside AXA's First Climate Insurance Policy in the DRC

AXA, the global insurance giant, has launched a new policy designed to safeguard farmers in the Democratic Republic of Congo.
The Paris-based insurer is offering this programme through its AXA Climate branch and hopes it will offer agricultural supply chains a financial buffer against the increasing risks posed by extreme weather events.
The initiative will form part of the National Agricultural Development Program (PNDA) and is backed by the DRC's Ministry of Agriculture and supported by the World Bank and the Global Shield Financing Facility.
This move comes at a time when climate insurance is under constant discussion in the spheres of sustainability and insurtech.
Growing climate risks are threatening food security
The DRC has been grappling with worsening climate conditions for decades. Since 1951, national rainfall has decreased at an alarming rate, decreasing by up to 40.79 mm per month per century.
This has significantly impacted agricultural yields, placing more than 21.8 million people at risk of food insecurity due to droughts and erratic weather patterns.
Against this backdrop, the PNDA aims to modernise agriculture and improve living conditions for farmers in the provinces of Kasaï, Kasaï-Central and Kwilu.
The newly launched insurance scheme will cover up to 300,000 farmers in these pilot provinces, providing protection against early and mid-season droughts as well as excessive late-season rainfall.
In the event of severe climatic shocks, direct payments will be made to insured farmers, with coverage of up to US$100 per farm annually.
This sum, equivalent to 15-20% of a farmer's average annual income, is intended to help them purchase seeds and resume farming activities.
Unlike traditional insurance models, payments will be issued without intermediaries or commissions, ensuring swift financial relief.
Parametric insurance powered by satellite data
Unlike conventional indemnity-based insurance, which relies on assessments of physical damage, this product uses parametric insurance principles.
It is underpinned by satellite-derived rainfall data from TAMSAT and ERA5. When pre-defined rainfall thresholds are exceeded, the compensation process is automatically triggered within hours, providing farmers with near-instant support.
Developed through collaboration between the DRC's Ministry of Agriculture, the Autorité de Regulation et de Control des Assurances (ARCA), the World Bank, AXA Climate, the World Food Program and national insurance companies, the insurance policy has been tailored to local needs.
It will be distributed by Mayfair Insurance Congo SA, leading a consortium of losers including ACTIVA, RAWSUR, GPA, Société Financière d'Assurance, SONAS and SUNU.
Reinsurance is provided by ZEP-Re.
A step towards a more resilient agricultural sector
The introduction of climate insurance is expected to not only protect farmers from financial ruin but also incentivize them to invest in productivity-enhancing techniques.
“This insurance will offer Congolese farmers essential protection against climatic risks, encouraging them to invest in ways that improve both their productivity and income,” says Jean de Dieu Mbey Bosimi, National Coordinator of the PNDA at the Ministry of Agriculture.
Regulators see the initiative as a transformative development for the DRC's insurance sector.
“The launch of agricultural insurance marks a major leap forward for the insurance sector in the DRC,” says Alain Kaninda Ngalula, Managing Director of ARCA.
“It illustrates the key role of the regulator in fostering innovation and expanding financial services to benefit the population,”
Insurance providers involved in the initiative have also expressed confidence in its impact.
“We are dedicated to protecting farmers' livelihoods and creating a local culture of agricultural insurance,” explains Gaudens Kanamugire, Managing Director of Mayfair Insurance Congo SA.
Likewise, Pierre Toyum, ZEP-Re's Director for the DRC, says: “Our commitment as a reinsurer demonstrates our confidence in the transformative potential of insurance for Africa's agricultural sector.”
An evolving model for climate resilience
The initiative could pave the way for broader adoption of agricultural micro-insurance across the DRC. The World Bank, which is financially supporting the programme, is closely monitoring its rollout.
“We will closely monitor the results of the insurance and refine the product over time. This large-scale initiative could pave the way for the introduction of agricultural micro-insurance in the DRC,” says Cristina Stefan, a Project Manager at the World Bank.
For AXA Climate, which led the technical design of the insurance product, the project represents a milestone in its mission to support climate adaptation.
“We are honoured to bring AXA Climate's expertise to Congolese farmers,” says Karina Whalley, Director of the Public Sector Department at AXA Climate.
“This achievement would not have been possible without the steadfast commitment of the DRC Ministry of Agriculture, the World Bank, national lenders and the Automation of Regulation and Control of Assurances.”
While the initiative marks a significant step forward, its success will depend on how well it integrates with broader agricultural reforms in the DRC.
Ensuring long-term sustainability will require continued collaboration between the government, private sector and international partners.
Nevertheless, the launch of climate insurance represents an important move towards building a more resilient agricultural sector, offering a safety net for farmers facing the growing uncertainties of climate change.
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