At Cairo ICT: Data and Tech Needed to Protect Farmers from Climate Risk
Insurance experts participating in the session “Agricultural Insurance and Digital Innovation: Building Climate Resilience Through Technology” at Cairo ICT 2025 agreed that weak data infrastructure, difficulties in loss assessment, and limited farmer awareness remain the most significant obstacles to expanding agricultural insurance in Egypt. They stressed that digitalization and institutional partnerships are the fastest path to developing this vital sector.
Speakers—during the session moderated by Hani Moussa, Senior Business Development Manager at eFinance Group—emphasized that agricultural insurance premiums in Egypt remain far below global averages, necessitating government intervention and support from international institutions. They underscored that new technologies, advanced risk-assessment tools, and innovative models such as index-based insurance are crucial to building farmer trust and expanding coverage.
Experts highlighted that precise loss calibration and rapid compensation processing form the backbone of any successful insurance system, calling for integrating agricultural and climate data into assessment mechanisms to simplify compensation and enhance market efficiency.
A New Era for Insurance Services
Mostafa Khalil, Deputy Assistant Chairman of the Financial Regulatory Authority (FRA), stated that the insurance sector—especially automotive insurance—is undergoing a major transformation fueled by improved data systems and the emergence of what he called “new car rights,” encompassing an integrated ecosystem that links insurance, ownership, technical inspection, and risk management.
Khalil noted the growing presence of specialized companies and certified inspection centers, improving pricing accuracy and safety standards. He emphasized that linking traffic data with insurance data is now essential for fair risk evaluation.
He added that the FRA has launched a regulatory framework allowing digital policy issuance and electronic premium collection under Decision 122, urging companies to comply with cybersecurity standards. Egypt is also seeing growing adoption of digital identity verification, paving the way for more sophisticated insurance solutions.
Khalil highlighted FRA’s efforts—led by Dr. Mohamed Farid—to expand technology adoption across all non-banking financial services, including electronic signatures and streamlined digital platforms. The authority is also working with GIZ to prepare a climate-risk handbook and supporting entrepreneurs through its regulatory sandbox to advance digital innovation in insurance.
New Products for a Changing Climate
Alaa El-Zohairy, Chairman of the Insurance Federation of Egypt, said the federation is building an integrated agricultural insurance framework based on accurate risk identification and the development of climate-responsive products.
He revealed that 21 specialized technical committees work daily on data analysis and market studies, and that two new insurance products have been finalized:
A product protecting specific crops from extreme heat waves (already approved).
An index-based extreme heat insurance product, where compensation is triggered automatically when temperatures exceed a defined threshold, eliminating the need for field inspection.
El-Zohairy noted that the global agricultural insurance market is valued at USD 1.1 trillion, with countries such as India succeeding in implementing index insurance. He confirmed that the federation is cooperating with international experts to develop indices tailored to Egypt’s agricultural environment.
Reaching smallholder farmers, he argued, requires new models that do not rely on traditional inspection. Parametric (index-based) insurance is the most cost-effective option, offering faster payouts and lower administrative burdens. He called for institutional integration among insurers, financial institutions, technology providers, and government data sources to ensure the success of agricultural insurance.
A Comprehensive Support System
Omar Farouk, Policy Officer at the World Food Programme (WFP) in Egypt, emphasized that insurance coverage for farmers remains low worldwide despite rising climate risks. He noted that agricultural production has become increasingly vulnerable due to rising temperatures, drought, and shifting rainfall patterns.
Farouk explained that WFP has been developing risk-measurement models for agricultural value chains in Egypt for the past 16 years, using data on temperature, rainfall, climate maps, and crop-growth indicators.
He stressed that designing effective agricultural insurance requires a strong data infrastructure, early-warning systems, and robust data processing. A single insurance policy is not enough, he said; what is needed is a complete support system combining digital financial tools for fast payouts, improved agricultural practices, and reliable data from government agencies.
Farouk noted that in some parts of Upper Egypt, agricultural seasons have shifted by up to three months due to rising temperatures, making continuous knowledge updates essential. He highlighted Egypt’s advanced digital payment infrastructure—such as InstaPay—as a key enabler of fast, transparent payouts for farmers.
A Digital Parametric Model for Smallholder Farmers
Heba Moussa, Head of General Insurance at Suez Canal Insurance, announced a new direction the company is pursuing to develop agricultural insurance in partnership with eFinance. She emphasized that agricultural insurance is a core component of micro-insurance.
Moussa explained that traditional products were tailored mainly to large farms due to their reliance on physical inspections. While the company previously succeeded in livestock insurance with banks, it is now developing a digital parametric model designed specifically to reach smallholder farmers at lower cost and with faster, data-driven compensation, relying on climate indices instead of physical inspections.
The session brought together experts in insurance, agriculture, and digital technologies to assess the future of agricultural insurance in the face of climate change and to explore innovative digital solutions to enhance farmer resilience and improve risk management in the Egyptian market.
Cairo ICT 2025 is held from November 16 to 19 under the patronage of Dr. Amr Talaat, Minister of Communications and Information Technology, with more than 500 exhibitors and broad participation from ministries, regulators, and government institutions.
The event is sponsored by Dell Technologies, eFinance Group, WB Engineers + Consultants, CIB, Huawei, Orange Egypt, EgyptAir, Egypt Trust, Mastercard, Medar, and Fortinet, with additional support from Salesforce, Benya Group, Khazna, National Bank of Egypt, AAIB, Bank of Alexandria, Shaker Group, ICT Misr, IoT Misr, Network International, and Meinhardt