Allianz

Burkina Faso’s economy is heavily reliant on agricultural production, with close to 80 percent of the active population employed in the sector. Cotton is the country’s most important cash crop. Against this backdrop, index-based insurance solutions have been developed to protect smallholder famers, in particular cotton growers and multicereal farmers.

Uruguay is highly dependent on hydropower for electricity and is exposed to the risk of drought and high oil prices. The World Bank executed a $450 million weather and oil price insurance transaction for the state-owned electric utility, which provides cost certainty to the energy company, budget stability to the government, and price stability to consumers. This milestone transaction, the largest executed so far, creates an important fiscal buffer, which is part of the wider risk management strategy.