Reduced vulnerability to external shocks for farming communities, improved income stability for farmers, increased safety net for farmers and small producers

Improved market intelligence and accelerated transformation of the agriculture sector

Reduced poverty levels and risks for farmers to hazards, incentivizing further investments in their crops and productivity; decreased accessibility gap to insurance

Subsidized crop insurance may encourage moving crop production into marginal lands, which results in environmental risks that would not occur under regular circumstances.(14)

Incentives to use more inputs as average returns rise (14)

Incentives to use fewer risk-reducing practices and materials (14)

Execution risk in case activities are not delivered as planned due to weak legal and regulatory frameworks

Unexpected impact risk because environmental degradation may accelerate with increasing agricultural activity

Sustain financial liquidity for farmers who are affected by natural disasters or unpredictable weather patterns.

National Agriculture Policy 2018: This policy emphasizes that sustainable development of agriculture relies largely on improved farmer resilience to production and market risks. Risk transfer, through agriculture insurance, has been identified as a main factor to increase that resilience.(16)

National Agriculture Policy 2018: Under this policy, efforts will continue to focus on improving the enabling environment e.g. through enhancing access to information for both farmers and potential insurers to build awareness and better estimate the risks.(16)

National Agriculture Insurance Scheme (NAIS): This scheme was implemented to mitigate risks and losses incurred by farmers due to natural disasters, pests or diseases. As a result of the scheme, the Rwandan government subsidizes 40% of total insurance costs.(17)

Vision 2050: Increased access to agriculture finance and risk sharing facilities are one of the priorities for the wealth creation in agriculture. Better insurance and financial services will reduce losses from the impacts of weather and climate change in the future.(18)

Private insurance providers, investors and the government are working on a blended finance scheme to provide affordable insurance to farmers.(10)

Financial incentives: The government subsidizes the value of the premium up to 40% for agroinsurance.(25)

Fiscal incentives: The government waives value added tax and withholding taxes for weather-based index insurance.(26) Capital gains are tax exempt. For investments equivalent to at least USD 50 million, investors receive with a corporate income tax holiday of up to 7 years. All investors can enjoy a preferential corporate income tax rate of 15%.(26)

Other incentives: Rwanda offers an accelerated depreciation rate of 50% over the first year of operations.(26)

Insurance Regulation 5/2009: This regulation provides a detailed framework for licensing requirements, fit and proper requirements, reinsurance, actuarial requirements, regulatory reporting requirements, solvency, risk management, etc.(19)

Regulation N° 2310/2018 - 00014[ 614] of 27/12/2018 on Licensing Conditions for Insurers and Re-Insurers: This regulation establishes the requirements and procedures for licensing private insurers and re-insurers.(20)

Regulation Nº 10/2017 of 19/05/2017 Determining Key Facts Statement and Information Disclosure for Insurance Products: This regulation requires insurers disclose key terms and conditions to consumers, enhancing competition between insurers and fair functioning of the financial market.(21)

Regulation No 2100 /2018 – 00012 [614] of 12/12/2018 of the National Bank of Rwanda Governing the Organisation of Microinsurance Business: This regulation governs microinsurers, protects microinsurance consumers and establishes a framework to promote and develop microinsurance business in Rwanda.(22)

Regulation of the National Bank of Rwanda No 03/2017 of 22/02/2017 on Administrative and Pecuniary Sanctions Applicable to Insurers: This regulation specifies administrative and pecuniary sanctions for violating the law on the organization of insurance business; regulations, instructions, directives and decisions of the Central Bank.(23)

Regulation Nº 11/2017 of 23/11/2017 on Corporate Governance, Risk Management and Internal Controls Requirements for Insurance Business (24)

Sonarwa General Insurance Ltd, Radiant Insurance Company, Prime Insurance Ltd

Rwandan Ministry of Agriculture and Animal Resources (MINAGRI), Rwanda Development Board (RDB), Rwanda Agriculture and Animal Resources Development Board (RAB), National Bank of Rwanda

OPEC Fund for International Development (OFID), World Bank (WB), European Investment Bank (EIB), African Development Bank (AfDB), KfW Development Bank, One Acre Farm, German Corporation for International Cooperation (GIZ), Agence Française de Développement (AFD)

Food and Agriculture Organization of the United Nations (FAO), The World Agroforestry Centre (ICRAF)