METEOROLOGY DEPARTMENT ENGAGES WITH INSURANCE COMPANIES AND STAKEHOLDERS

By Happy Mulolani

Given the varying climatic weather conditions which has culminated in a drought that has hit various parts of Zambia this farming season, there is a need for concerted efforts to promote weather products aimed at supporting farmers across their various value chains.

This backdrop provided the basis for the Zambia Meteorological Department under the Ministry of Green Economy and Environment to engage insurance companies and stakeholders to explore and develop appropriate ways of providing climate information products and services to farmers countrywide.

Speaking during a co-development of climate information for weather index insurance product stakeholders meeting in Siavonga recently, meteorologist Bathsheba Musonda underscored the significance of empowering farmers on the weather-based index insurance, which is aimed at protecting farmers’ crop yields.

“Weather-based insurance is a type of insurance that pays out based on the occurrence of a predefined weather event designed to protect farmers and other Agri-businesses from the adverse climatic effects,” Senior Meteorologist Ms Musonda stated.

Ms Musonda pointed out the need to design products and services that will service farmers with climate variability.

“It is imperative to ensure there is a verifiable objective and real-time monitoring elements,” she noted.

To bridge the existing data gap, the meteorological department has stepped up as custodian of data to work collaboratively with partners in ensuring farmers have accurate calculations of their bail-out.

The objective of the meeting was to familiarise participants with the comprehensive meteorological services by the department, which includes critical weather data and forecasts that are essential for developing and managing insurance products. It also sought to develop a strategic plan for integrating weather and climate data into the operational frameworks of your insurance companies, as this integration enhances the effectiveness and responsiveness of insurance products to the needs of farmers. It was also necessary to look at risk mitigation to facilitate and mitigation of climate-related risks through the provision of customised meteorological information. The ultimate goal is to enable insurance products that are not only responsive but also proactive in managing climate risks.

 

Zambia Meteorological Department Director Edison Nkonde explained that the engagement with various stakeholders was aimed at developing and strengthening the provision of weather and climate information products and services for insurance.

 

“Your participation is a testimony to our collective commitment to enhancing climate resilience and supporting agricultural livelihoods in Zambia,” Mr Nkonde stated.

 

He reiterated that it is not about insurance but it’s about building a resilient agricultural sector capable of withstanding the challenges posed by climate variability and change.

 

“Weather Index Insurance (WII) is a micro-insurance product designed to provide pay outs based on a predefined weather index rather than on actual losses,” Mr Nkonde said.

In particular, this approach is more effective in managing risks associated with weather anomalies, such as droughts or excessive rainfall, which are increasingly common in our changing climate. By availing a reliable safety net, the weather Index Insurance assists farmers to recover quicker from these climatic shocks, thereby promoting stability and sustainability in various agricultural practices.

Mr Nkonde said in a speech read on his behalf by Principal Meteorologist Lyson Phiri.

While Agricultural Specialist under Zambia State Insurance Corporation (ZSIC) Emmanuel Malata acknowledges that the early warning system helps to review ratings. This has enabled ratings to be equitable to the risk, as the information being provided is useful to various communities.

ZE- PRE Insurance Expert, Isaac Zyambo echoes that climate change is rapidly emerging and a defining factor in the insurance industry, especially in the agriculture insurance subsector.

Mr Zyambo explains there are two sources of weather data which include; satellite and automatic weather stations. This means to effectively provide information on various value chains, it is best to combine agronomic and climate data as it directly determines the type of insurance.

Therefore, it is key to utilise models that validate a particular risk and also provide analysis of recent past incidences, as it is key to understanding the different stages of crop growth about the various risks. For instance, sometimes risks can be adduced when there is excess rainfall leading to poor germination and growth. There are also incidences of plants and diseases of crops, which is likely to affect the quality of yields.

Participants were drawn from the Pensions Insurance Authority, ZE-PRE, the Ministry of Agriculture, Smart Zambia, the Remote Sensing Centre, the Ministry of Fisheries and Livestock, representatives from insurance companies, and the World Food Programme.

The meeting was supported by the Strengthening Climate Resilience of Agricultural Livelihoods in Agro-Ecological Regions I and II in Zambia (SCRALA) project and the World Food Programme (WFP).

This engagement marks a significant step towards fostering collaboration between meteorological services and the insurance sector. With the outcomes of the meeting, it is envisaged that the synergy between meteorological data and the insurance sector will be strengthened by developing a clear roadmap for integrating weather index data into insurance operations, as that will provide the impetus for a collective ability to support farmers and mitigate impacts of climate-related risks.