SEADRIF, FAO partner to assess Agricultural Risk Finance Facility

Both seek to address this by improving access to data, models, and insurance.

The Southeast Asia Disaster Risk Insurance Facility (SEADRIF) and the Food and Agriculture Organization (FAO) have partnered with six ASEAN countries to assess the feasibility of a regional Agricultural Risk Finance Facility (ARFF). 

The initiative aims to enhance financial protection for the region’s agrifood sector, which employs over one-third of the workforce and contributes more than 10% of regional GDP.  

Despite agriculture’s economic significance, only 3% of global climate finance is directed to the sector. 

SEADRIF and FAO seek to address this by improving access to data, models, and insurance mechanisms while reducing transaction costs and premium affordability challenges. 

A regional approach could provide cost advantages, streamlined market access, enhanced product development, and greater financial stability for participating countries.  

With funding support from the Green Climate Fund, the proposal was discussed at the ASEAN Climate Resilience Network’s 10th anniversary event. 

In the coming months, SEADRIF and FAO will conduct a pre-feasibility assessment to identify gaps and align with country objectives.