The United Nations Development Program (UNDP) has launched an Insurance and Risk Financing Facility (IRFF) today in Ethiopia.

This Insurance Risk Financing Facility would help Ethiopia build the capacity of communities and businesses to manage shocks with accessible, affordable, and innovative insurance products for farmers, it was indicated.

Speaking at the launching program, UNDP Ethiopia Resident Representative, Samuel Doe said the launching of IRFF in Ethiopia is crucial to strengthening the insurance sector and building resilience of the people.

Ethiopia, like many countries, is vulnerable to various natural and manmade hazards, the representative pointed out.

To this end, Doe believes that Ethiopia’s Insurance and Risk Financing Facility is expected to leverage the power of insurance and risk financing mechanisms to enhance resilience and reduce vulnerability.

‘Through a combination of innovative insurance products, risk assessment tools, and capacity-building initiatives, the facility aims to empo
wer communities, businesses, and government institutions to better anticipate, absorb, and recover from shocks and crises.’

The IRFF will also be imperative to support the National Bank of Ethiopia in setting up an insurance supervision directorate that will act as an independent regulatory body, overseeing the insurance industry.

On his part, National Bank of Ethiopia Insurance Supervision Director, Belay Tulu emphasized the need to build household business and community resilience to prevent sufferings from disasters.

The IRFF will help to further develop activities in the sector, Ministry of Agriculture Investment and Product Marketing Executive Director, Dereje Abebe said

Dereje said IRFF will bring about a positive contribution to expand the coverage of the insurance service and build capacity.

Source: Ethiopian News Agency