T.11 Total USD value of premiums paid and sum insured under risk transfer mechanisms supported by WFP

T.11 Total USD value of premiums paid and sum insured under risk transfer mechanisms supported by WFP

VERSION

V1.0 2026.03 — NEW

INDICATOR CODE

T.11

TECHNICAL OWNER

PRG-R

INDICATOR TYPE

Country Level Output Indicator

INDICATOR CLASSIFICATION

Complementary

INDICATOR SCOPE

Programme specific

APPLICABILITY

The selection of this indicator is recommended against the following sub-activities in CSP logframes. Selection of the below sub-activities will NOT trigger in COMET the mandatory selection of this indicator:

1. Macro insurance (MAI)

2. Micro/meso insurance (MMI)

UNIT OF MEASUREMENT & ANALYSIS

USD

DEFINITION

This indicator counts the total USD value of the sum insured and premiums paid by WFP, government, donors, beneficiaries or partners to financial institutions or insurance providers for policies supported by WFP’s Climate Risk Management Activities. This indicator excludes policies insuring known and recorded tier 1 beneficiaries where the premium paid are recorded as CBT transfers under value voucher for services. Only premiums not recorded as CBT value voucher transfers for services are recorded under this indicator.

WFP facilitates access to three types of insurance schemes: micro, meso, and macro insurance.

Below are some key definitions related to the indicator:

Premium: USD Payment value made to financial institutions or insurance providers in exchange for an insurance policy against losses caused by climate shocks

Sum insured. Sum insured refers to the maximum amount of financial compensation payable under an insurance policy when a covered shock occurs. The sum insured is defined in advance. Payouts are made up to the sum insured, in line with the policy's predefined triggers and conditions.

WFP’s insurance schemes

Micro Insurance: Microinsurance, also referred to as inclusive climate risk insurance within WFP’s Inclusive Risk Financing (IRF) framework, is a financial protection mechanism that provides low‑income and vulnerable populations with affordable, accessible insurance coverage against specific weather‑related shocks such as droughts, floods, or storms.

Microinsurance policies are designed to be simple, targeted, and affordable, with premiums and coverage levels adapted to the needs and payment capacity of vulnerable households, including smallholder farmers and marginalized communities. When a covered shock occurs, the insurance provider delivers a timely payout based on pre‑agreed conditions, enabling affected households to absorb losses, avoid negative coping strategies (such as selling productive assets), and recover more quickly from shocks.

Within WFP‑supported programmes, access to microinsurance may be enabled through temporary premium subsidies, including the use of WFP (i) value vouchers for services, (ii) combinations of vouchers and household cash contributions, or (iii) fully household‑financed premiums. Only premiums not recorded as CBT value voucher transfers for services are recorded under this indicator.

Meso Insurance: WFP is putting in place livestock index insurance schemes integrated with social protection systems that work to protect livestock by making swift payments in case of a major drought, with the objective to support pastoralists to buy fodder for their livestock.

As in the case of micro insurance, premiums may be fully or partially supported by WFP, including through value vouchers for services, as part of integrated resilience and social protection strategies. Only premiums not recorded as CBT value voucher transfers for services are recorded under this indicator.

Macro Insurance: – e.g. African Risk Capacity Replica (ARC replica). It is an index insurance product offered by ARC Ltd to WFP and other humanitarian partners to mitigate climate risk. Under ARC Replica Coverage, WFP and other partners can match the insurance coverage of ARC Member States by purchasing a ‘Replica Policy’, which offers additional protection to ARC member countries. In this scheme the premium is normally paid by WFP but could also be paid directly by the donor or other partners.

RATIONALE

This indicator reports on the USD value cost of the insurance policies purchased, with the objective of protecting communities and households from climate shocks through Climate Risk Management Activities and the sum insured offered to households. Depending on the occurrence and magnitude of a Climate shock the latter is the maximum amount that could be disbursed by insurance companies to cover the losses insured. This indicator reports the total sum insured and cost of the insurance policies disaggregated by type of Payment. Only premiums not recorded as CBT value voucher transfers for services are recorded under this indicator.

DATA SOURCE

For micro and meso insurance policies and reporting on total USD value of premiums paid to acquire the insurance policies facilitated by WFP, data can be extracted from financial institutions or insurance providers. For macro insurance policies, data on the total value of the premium paid is stated in the country specific ARC Replica Contract or WFP purchase order (PO) in WINGs.

INDICATOR CALCULATION FOR REPORTING

The indicator values are disaggregated by type of insurance schemes (micro, meso or macro insurance), by modality of payment (paid by WFP, not paid by WFP) and by beneficiary tier (Tier 1, Tier 2, Tier 3).

The values (planned and actuals) are aggregated for reporting in the annual country report by type of insurance scheme and beneficiary tier.

Important to note that the total value of micro/meso premiums paid by WFP on behalf of tier 1 beneficiaries is not reflected under this indicator as this figure is reported as a CBT transfer of “value voucher transfer for services”. As only beneficiaries receiving WFP transfers can be reported as tier 1 beneficiaries, the option “not paid by WFP” does not apply either for MMI premiums paid on behalf of tier 1 beneficiaries.

Thus, for MMI activities, the total value or premiums paid for climate insurance policies by a CO is the overall value of micro/meso premium plus the total sum of value voucher transfer for services reported during the same reporting year.

DATA ENTRY AND DISAGGREGATION IN CORPORATE SYSTEMS

Each reporting year, data is entered into the COMET Other output plan (Planned) and Completion Reports (Actuals).

Planned and Actual values are reported by

• Sub-activity

• Tier beneficiary

• Premium paid / not paid by WFP

This output indicator is disaggregated into three detailed indicators:

T.11.1 Total USD value of macro-insurance premiums and sum insured supported by WFP

T.11.2 Total USD value of micro-insurance premiums and sum insured supported by WFP

Depending on the insurance scheme and how the insurance premiums are paid, the CO will enter one or multiple values.

PLANNED FIGURES

The planned figures for this indicator should be based on programme objectives and funding available.

Planned figures are estimated in the first quarter of the first year of CSP/ICSP implementation for the duration of the CSP and inserted in the COMET Other Output Plan (OOP)

For each subsequent years, the planned figures can be revisited in the first quarter of the current reporting year.

Planned values are set at the level of the detailed indicator(s) for each insurance scheme.

FREQUENCY OF DATA COLLECTION

The frequency of data collection (monthly, quarterly, bi-annually or annually) depends on the CO programme approach.

For all insurance schemes, the data should be recorded in COMET as soon as the insurance policy is signed up.

For micro and meso insurance, the premium and sum insured should be collected at the stage when insurance is contracted (registration/sign-up of participant and financial contribution) and for macro-insurance, it should be collected at the stage of signing the ARC Replica contract.

At minimum, the data should be collected annually for corporate reporting.

INTERPRETATION

This indicator reports on the USD value of premiums paid for insurance policies facilitated by WFP and sum insured that could be triggered and paid to beneficiaries of climate risk management insurance policies in case of a climate shock

The USD value of premium can be understood as the total cost of insurance/protection against losses caused by climate shocks that has been transferred or subsidized to the most vulnerable communities.

The USD value of sum insured reflects the maximum level of protection offered to households from climate shocks through financial instruments. Depending on the occurrence and magnitude of a Climate shock this is the maximum amount that could be disbursed by insurance companies to cover for the losses insured.

Depending on implementation mechanisms, the comparison between payment modalities can also show whether the cost of insurance is mostly subsidized or afforded by beneficiaries which in turn can also be interpreted as their increased capacity to anticipate and prepare for Climate Shocks.

A higher value of this indicator points to a greater number of vulnerable people covered against losses caused by climate hazards. Comparing the cost of insurance with the number of people insured will also inform whether the costs of insurance premiums are changing overtime

Comparing the sum insured with the total value of payouts for the same policy is a proxy of the magnitude of the shock. The smaller the difference is between the payout and the total sum insured, the bigger the losses and damages were.

Comparing the total sum insured with the number of people insured will also indicate the average value insured per beneficiary in a given year. For instance, this comparison can be made for the same type of insurance mechanism in the same CO between years to confirm if the per capita sum insured changes overtime to adapt to contextual changes. The same ratio can be used to compare the per capita sum insured between COs using the same insurance mechanism or between insurance mechanisms.

REPORTING EXAMPLE(S)

Climate insurance planned and actual figures

INDICATORS COLLECTED & ANALYSED AT THE SAME TIME

The following output indicator must be reported along with this indicator:

• T.1 Number of people (Tier 1) receiving direct food/cash-based/commodity vouchers/individual capacity strengthening transfers (disaggregated by sex, age group, residence status, modality and activity) (SMS or FFT sub-activities)

• T.2 Number of people indirectly benefiting (Tier 2) from an asset, knowledge and capacity, commodities or services delivered through WFP programmes (SMS sub-activity)

The above generic indicator is used to monitor indirect beneficiaries (Tier 2) receiving insurance premiums or payouts (Tier 2).

• 35. Investment capacity index (ICI)

• 106. Number of people benefitting from improved national policies, systems or programmes for which WFP provided technical (and financial) support (Tier 3 beneficiaries).

VISUALIZATION

This information is visualized in real time in WFP analytics.

LIMITATIONS

This indicator only reports the total USD value of premiums paid and the sum insured for insurance products under the implementation of Climate Risk Management activities.

It does not describe to what level participants are covered, nor the frequency or type of risks that are covered, nor whether the shocks have occurred, or participants were compensated through a premium payout.

Therefore, all complementary information that is not provided by other indicators under the CRF should be mentioned in the narratives of the annual corporate reports.

FURTHER INFORMATION

Microinsurance at WFP in a nutshell