Risk and Insurance

Farming can be a risky endeavor. While farmers in developed countries have access to a range of financial instruments—including credit and insurance—to manage agricultural risks, many farmers in developing countries cannot fall back on such a safety net. For these farmers, risk is one of the main barriers to expanding investments in agriculture.

IFPRI research in this theme aims to improve the availability, affordability, and quality of crop insurance and other financial instruments to reduce the risk of agricultural investments. This includes improving product design through technology and institutional innovations, and rigorous impact evaluations to study the cost-effectiveness of these innovations in enhancing resilience.

IFPRI researchers are developing innovative products attuned to the local needs of both farmers and bankers and insurers, such as picture-based crop insurance (PBI) and risk-contingent credit. IFPRI’s research on risk and insurance is closely aligned with the Sustainable Development Goals (SDGs), including SDG 1, SDG 2, and SDG 10.