Enabling early drought response through anticipatory insurance

This case study examines how EU-funded support and African Risk Capacity (ARC) technical assistance piloted anticipatory parametric insurance in Malawi and Zambia during the 2023/24 and 2024/25 agricultural seasons. The initiative was designed to provide payouts early in the agricultural season when early-season rainfall deficits signal drought risk. The project supported the design and issuance of two anticipatory drought insurance policies and included training on Africa Risk View modelling, seasonal monitoring, anticipatory trigger design and operational planning. Operational plans were developed to guide pre-agreed anticipatory actions, while beneficiary targeting leveraged national social protection registers to support rapid implementation.

This case study finds that anticipatory insurance can fund resilience activities in advance rather than after harvest, reducing household vulnerability, strengthening coping capacity and helping shift disaster management from reactive relief to proactive risk reduction. The project successfully designed and rolled out an anticipatory insurance product in both countries, completed early drought loss calculations three months before season end, and strengthened operational planning through government Technical Working Groups and humanitarian partners. The publication highlights preparedness, early action, risk financing and the integration of anticipatory action into national systems.