From Climate Risk to Resilient Agriculture: Leveraging Insurance, Blended Finance, and Sustainable Practices for Ex-Ante Adaptation

As climate-related extreme events continue to increase in both frequency and severity, protecting critical sectors such as agriculture requires a shift from reactive, ex-post compensation toward proactive, ex-ante risk reduction. Opening with insights from the 2nd edition of CNseg’s Climate Events and Insurance Radar in Brazil, this panel highlights that a substantial share of economic losses stems from prolonged droughts that heavily impact agricultural production.

Building on this evidence, FGV will demonstrate how insurance instruments combined with blended finance structures, bringing together public, private, and concessional capital, can de-risk adaptation investments before disaster strikes. The Nature Conservancy (TNC) will then illustrate how Nature-based Solutions (NbS) and sustainable agricultural practices can directly reduce climate risk, generating measurable financial value for insurers, investors, and capital markets.

By connecting insurance, risk intelligence, blended finance, and sustainable land-use practices, this panel offers an actionable roadmap for increasing project bankability, mobilizing capital, and strengthening long-term climate resilience in agricultural systems.

Guiding Questions

• How can empirical evidence from the Climate Events and Insurance Radar help quantify the protection gap in agriculture and inform ex-ante adaptation strategies?
• How can insurance mechanisms and blended finance structures function as effective de-risking tools that unlock investment in sustainable agriculture and Nature-based Solutions?
• How does the adoption of sustainable agricultural practices reduce climate exposure, and how can this risk reduction be incorporated into insurance pricing, underwriting, and capital allocation decisions?The panel has been designed around three complementary segments that build a continuous narrative:

  1. Opening and Risk Diagnosis (CNseg)
  CNseg opens the session by presenting key findings from the 2nd edition of the Climate Events and Insurance Radar in Brazil, highlighting the scale of climate-related disasters across the country, the growing severity of droughts, and the overwhelming concentration of losses in the agricultural sector.

  2. Financial Instruments and Ex-Ante Adaptation (FGV)
  FGV then demonstrates how insurance mechanisms integrated into blended finance structures, combining public, private, and concessional capital, can reduce investment risks and enable adaptation measures before extreme events occur. These financial instruments help reduce exposure, vulnerability, and potential losses while improving the bankability of adaptation projects.

  3. Risk Reduction Through Sustainable Practices (TNC)
  TNC complements the discussion by showcasing how sustainable agricultural practices and Nature-based Solutions (NbS) can change risk profiles in agricultural landscapes, drawing on evidence from regenerative practices that help farmers manage uncertainty and maintain food and water security.

  Integrated Discussion
  A moderated discussion focused on the intersection of climate risk data, the agricultural sector’s climate transition, and innovative financing solutions for adaptation and resilience.

  Supporting Evidence and Key Data (CNseg)

• Scale of Climate Losses: Between 2022 and 2024, Brazil recorded approximately BRL 184 billion in economic losses resulting from climate-related disasters. An additional BRL 31 billion in losses were recorded during the first half of 2025 alone.
• Agriculture’s Disproportionate Vulnerability: Droughts and prolonged dry spells represent the leading cause of financial losses in Brazil, disproportionately affecting agricultural production and rural economies.
• Significant Protection Gap: Current estimates indicate that only about 9% of economic losses associated with climate-related disasters in Brazil are covered by insurance policies.
• Need for De-Risking Mechanisms: Scaling investment in Nature-based Solutions (NbS) requires