Insurance companies launch Seed Climate Insurance to strengthen agricultural resilience

In a joint effort to mitigate the impacts of climate change on the agricultural sector, Emose, Fidelidade Ímpar and Hollard launched the “Seed Climate Insurance” this week. This innovative project aims to protect farmers in the provinces of Niassa, Cabo Delgado and Tete against extreme weather events, such as severe droughts or excessive rainfall.

Funded by the World Food Programme (WFP), the mechanism operates through a co-insurance scheme between the three insurance companies. In the event of a claim, farmers will be compensated with new certified seeds, ensuring the continuity of production. The risk sharing is as follows: 52.5% is borne by EMOSE, 32.5% by Fidelidade Ímpar and 15% by Hollard.

For EMOSE, this indexed insurance represents "a strategic mechanism for climate resilience." "It protects small-scale farmers and guarantees their continued activity, even in the face of the most severe climate shocks. This is how we strengthen food security," the insurer stated in a press release.

This vision is shared by Fidelidade Ímpar. Célia Ferreira, Chief Operating Officer of the company, emphasized that "contributing to the country's food security implies providing solutions to those at the base of production." "This project offers a practical response, reinforcing the resilience of families that depend on agriculture," she stated.

For his part, Israel Muchena, Managing Director for Agricultural Insurance at Hollard Seguros, emphasized the social impact of the initiative: “It is a critical measure to reduce the vulnerability of smallholder farmers, a segment that guarantees food security in Mozambique.”

Beyond financial protection, the project incorporates a strong educational component, aimed at raising awareness among farming communities. The objectives include educating farmers about the importance of agricultural insurance and the acquisition of certified seeds, seen as a primary asset for robust and sustainable production.

The Seed Climate Insurance came into effect on December 1st and will be active until March 31st, 2026, a period that coincides with the main agricultural season in the country.

With this alliance, the three insurance companies are taking a decisive step in supporting the most vulnerable rural communities, promoting more resilient and protected agriculture. The initiative also represents a significant contribution to financial inclusion in Mozambique's primary sector.