Securing land and livelihoods: Insurance for drought resilience 

As the planet continues to warm, harsher droughts, extreme heat and erratic rainfall are eroding the food security and livelihoods of millions – especially the smallholder farmers who produce one third of the world’s food. 

Over the past three decades, disasters have caused US$3.8 trillion in crop and livestock losses globally. But in regions like Africa, only three per cent of family farmers have agricultural insurance, leaving millions exposed to shocks. Meanwhile, land degradation and drought are pushing rural communities deeper into poverty, jeopardizing the ability to feed a growing world population.  

One way to address the challenge is reducing insurance premiums for farmers who manage the land sustainably, as explained by a new report commissioned by UNCCD and funded by the International Drought Resilience Alliance (IDRA) This innovative model leverages mobile and satellite technologies, behavioral science and systems thinking to provide financial protection while promoting sustainable land use. 

The report, called ‘Securing Land and Livelihoods: Insurance for Drought Resilience,’ shows the practical and economic benefits of the model through case studies from Ethiopia, Kenya, Malawi and the Horn of Africa. To put it in practice, authors recommend building public-private partnerships, establishing pilot projects and embedding these solutions into national development plans and climate risk strategies. 

This integrated model reflects UNCCD’s commitment to solutions that align land management, insurance innovation and resilience-building for the communities most affected by land degradation and drought. A pilot project is underway in Namibia, with progress to be shared at UNCCD CRIC23 this December, and the project findings to be presented at a dedicated insurance event during UNCCD COP16 in 2026.