Call for Proposal (CfP) Partnership with Insurance Provider to Co-Design and Implement Parametric Risk Solutions for AgriTech4Rwanda

/ 3 March 2026 / 0 Comments

1. Background and Rationale

Agriculture remains central to Rwanda’s economy, contributing over 25% of GDP and employing approximately 65% of the workforce. Despite its importance, the sector continues to face significant climate and credit risks. Increasing climate variability, erratic rainfall patterns, soil degradation, and limited access to risk mitigation instruments expose smallholder farmers and agribusinesses to production volatility and financial instability.

In response, the Rwanda Green Fund (RGF), in partnership with the CGIAR Hub for Sustainable Finance (ImpactSF) and with support from the Gates Foundation, launched the AgriTech4Rwanda Innovation Challenge 2025. The initiative identifies and scales science-based agritech solutions aligned with Rwanda’s Strategic Plan for the Transformation of Agriculture (PSTA V) and national climate resilience priorities.

Under this program, RGF is deploying a structured recoverable grant financing facility to support five selected climate-smart agritech ventures. The facility is designed to catalyze climate-resilient investment, enhance enterprise stability, and mobilize additional private capital through integrated risk management mechanisms.

The financing architecture incorporates a hybrid risk-transfer framework combining parametric and indemnity-based insurance mechanisms to reduce climate exposure, improve investment resilience, and safeguard catalytic capital deployed under the facility.

To operationalize this risk architecture, RGF seeks to engage a qualified insurance partner to validate, operationalize, and support lifecycle monitoring of the insurance component embedded within the facility.

2. Objective of the Engagement

The selected partner will support the implementation of an institutional-grade insurance solution embedded within the AgriTech4Rwanda financing structure. The engagement focuses on ensuring that the hybrid parametric–indemnity framework is technically robust, operationally implementable, actuarially sound, and continuously monitored for performance effectiveness.

Key objectives include:

Technical validation of existing conceptual insurance structures;
Refinement of product parameters and underwriting assumptions;
Operationalization of policy design and insurance administration processes;
Integration of monitoring frameworks aligned with climate risk analytics and portfolio governance;
Ongoing technical oversight to ensure product effectiveness, actuarial stability, and alignment with climate risk dynamics over time.

3. The Investment Model: Climate-Smart Financing Bundle

The Climate-Smart Financing Bundle is an institutional-grade financial architecture designed to de-risk agritech investments and scale climate-resilient innovation. It embeds multiple layers of financial, structural, and operational risk management.

The model comprises six core components:

Recoverable Grant Capital – Provides zero-interest catalytic financing structured over a 5-year tenor, with a grace period and scheduled principal repayments. This capital functions as a de-risking tool, strengthening enterprise balance sheets, and enabling private capital mobilization while preserving capital recycling within the facility.
CSA Adoption for On-Farm De-Risking – promotes the uptake of climate-smart agricultural practices that stabilize production, improve resource efficiency, and enhance the predictability of enterprise cash flows.
Hybrid Parametric–Indemnity Insurance – Delivers structured risk-transfer protection through data-driven parametric triggers (e.g., rainfall deficits, soil moisture anomalies, extreme weather events) complemented by indemnity-based coverage for enterprise-specific operational risks.
Leveraged Risk Capital – Facilitates structured commercial lending frameworks with improved pricing, credit enhancement, and aligned repayment structures, crowding in private finance alongside concessional capital.
Digital Risk & Performance Monitoring Channels – Integrates geospatial data, climate diagnostics, repayment tracking, and payout management systems to ensure transparency, timely trigger verification, and reduced administrative burden.
Structured Risk Governance Framework – Embeds actuarial oversight, portfolio-level risk analytics, underwriting validation, and fiduciary reporting mechanisms to safeguard donor capital and ensure institutional-grade compliance.

This integrated approach allows for efficient capital allocation, enhanced credit performance, and improved resilience of agricultural systems.

4. Scope of Work for the Insurance Partner

The Activity 1 — Product Development Validation and Operationalization

A. Risk Scoping Validation and Data Integration

The partner shall undertake a comprehensive review and validation of existing climate, agronomic, and exposure datasets relevant to the targeted geographies and value chains. This includes:

Reviewing historical climate datasets, including rainfall patterns, temperature variability, drought indicators, and extreme weather events;
Assessing agricultural production data to understand yield variability, crop-specific vulnerabilities, and regional risk exposure patterns;
Validating underlying assumptions used in preliminary risk modelling;
Confirming hazard exposure profiles and identifying any gaps requiring additional data acquisition;
Ensuring that datasets used for trigger calibration meet minimum standards for statistical reliability and operational feasibility.

The objective is to confirm the integrity of existing analytical foundations while identifying opportunities for refinement.

Expected deliverables:

Inception Report (within agreed timeline):
Climate and Agronomic Data Validation Report
Risk Profiling Report (Per Venture and Portfolio-Level)

B. Product Design Operationalization

The selected partner will be responsible for translating the validated risk framework into fully operational insurance products. Responsibilities include:

Reviewing existing conceptual designs for hybrid parametric and indemnity coverage structures;
Refining actuarial pricing assumptions based on validated datasets;
Finalizing policy structures, including coverage definitions, exclusions, trigger methodologies, and payout mechanisms;
Designing operational workflows covering policy issuance, enrolment processes, data verification procedures, and claims settlement pathways;
Establishing administrative protocols that ensure efficiency, transparency, and compliance with regulatory requirements;
Developing documentation standards to support underwriting, monitoring, and audit processes.

The design process should prioritize operational practicality and scalability across multiple agritech ventures.

Expected deliverables:

Final Insurance Product Design Document
Actuarial Pricing and Premium Justification Note: Detailing updated pricing assumptions, Loss modelling outputs and scenario analysis, Premium adequacy assessment

C. Underwriting Placement and Market Engagement

The partner shall:

Engage relevant underwriting markets capable of supporting hybrid climate-risk structures;
Assess insurer and reinsurer capacity;
Facilitate negotiations related to risk placement and coverage structure;
Ensure that underwriting arrangements are aligned with applicable regulatory requirements;
Deliver finalized policy frameworks ready for implementation.

Expected deliverables:

Final Underwriting Placement Confirmation

Activity 2 — Product Monitoring and Lifecycle Performance Oversight (2027 Onward)

The selected partner will provide ongoing technical monitoring services designed to evaluate performance, manage emerging risks, and maintain actuarial stability.

A. Risk and Exposure Monitoring

Monitoring activities shall include:

Continuous mapping of insured exposure across geographic regions and production systems;
Identification of concentration risks where exposure accumulates in climate-sensitive zones;
Tracking hazard indicators including rainfall anomalies, temperature extremes, drought stress signals, flood alerts, and biological risks such as pest and disease outbreaks;
Integrating remote sensing data and other technological inputs to refine exposure analysis;
Updating risk models periodically to incorporate new data sources and evolving climate patterns.

Expected Deliverables

Quarterly Risk Exposure Dashboard Reports
Annual Climate Hazard Monitoring Report
Updated Risk Model Memorandum (Annual)

B. Product Performance and Suitability Monitoring

The partner shall evaluate whether insurance products remain fit-for-purpose over time by:

Assessing the alignment between trigger thresholds and observed production impacts;
Conducting basis risk analysis to determine whether payouts accurately reflect real losses;
Reviewing performance across different farmer segments, crop types, and production systems;
Identifying structural improvements to enhance product effectiveness.

Expected Deliverables

Annual Product Performance Evaluation Report
Product Improvement Recommendation Memo

C. Index Performance and Trigger Calibration

Where index-based triggers are applied, the partner will:

Compare index signals with observed field outcomes;
Evaluate trigger sensitivity to ensure activation occurs at appropriate stress levels;
Monitor geospatial performance variations and identify areas requiring recalibration;
Review premium adequacy and long-term sustainability of pricing assumptions.

Expected Deliverables

Trigger Calibration Review Report (Annual or Per Season)
Premium Sustainability Assessment Note

D. Actuarial Performance Monitoring

Technical monitoring must include:

Analysis of loss ratios across seasons and regions;
Validation of yield assumptions used in pricing models;
Comparison of actual losses with projected risk scenarios;
Assessment of premium sufficiency relative to claims experience.

Expected Deliverables

Annual Actuarial Review Report
Portfolio Risk Stability Brief

E. Suitability and Operational Monitoring

The partner will:

Assess whether coverage structures remain aligned with evolving agricultural practices and climate conditions;
Evaluate whether monitoring methodologies (e.g., crop-cutting experiments, remote sensing) maintain sufficient accuracy;
Recommend adjustments to thresholds, coverage structures, or monitoring approaches where required.

Expected Deliverables

Operational Suitability Assessment (Annual)

F. Physical Product Validation Activities

The monitoring framework shall include structured field validation activities to:

Verify ground-level production outcomes;
Validate remote sensing indicators against actual conditions;
Identify discrepancies between modeled risk and observed impacts;
Inform future recalibration of insurance triggers and parameters.

Expected Deliverables

Field Validation Report (Per Season or Annual)
Trigger Adjustment Advisory Note (If Required)

5. Eligibility and Qualifications

A. Mandatory Eligibility Requirements

Applicants must meet the following minimum eligibility criteria:

Be a licensed insurance company, reinsurer, or registered parametric risk solution provider, legally authorized to operate in its jurisdiction of incorporation;
Demonstrate the legal capacity to underwrite, structure, or intermediate insurance products in Rwanda, or provide evidence of partnership arrangements with locally licensed insurers where required;
Be in good regulatory standing and not subject to suspension or insolvency proceedings;
Have a minimum of five (5) years of operational experience in insurance or parametric risk structuring;

Failure to meet the above mandatory requirements may result in disqualification from further evaluation.

B. Technical Qualifications and Experience

We invite applications from insurance companies, reinsurers, or parametric risk solution providers with demonstrated capacity in:

Designing and implementing index-based or parametric insurance products, preferably in the agriculture or climate risk space;
Operating in low- and middle-income countries, with preference for East Africa or Rwanda-specific experience;
Collaborating in blended finance and climate-smart investment initiatives;
Utilizing digital platforms and geospatial data for monitoring and payout determination

6. Evaluation Criteria

Proposals will be evaluated through a two-stage process:

Technical and Financial Evaluation (Weighted Scoring)

A. Preliminary Eligibility Screening (Mandatory Requirements)

Proposals will first be assessed against the mandatory eligibility requirements outlined in Section 5. Only applicants that meet all mandatory requirements will proceed to the technical and financial evaluation.

B. Technical and Financial Evaluation

The overall evaluation will be based on a weighted scoring methodology:

Technical Proposal – 80%
Financial Proposal – 20%

Only bidders achieving the minimum technical threshold (to be specified, e.g., 70% of technical score) will have their financial proposals evaluated.

C. Technical Evaluation Criteria (80%)

Technical proposals will be assessed based on the following criteria:

1. Technical Approach and Methodology – 40%

Demonstrated understanding of the assignment and hybrid insurance structure
Soundness and clarity of proposed methodology
Approach to actuarial modelling and trigger calibration
Robustness of monitoring and performance oversight framework
Risk mitigation and governance integration

2. Experience and Qualifications – 30%

Relevant track record in parametric or index-based insurance
Experience in agriculture or climate-risk insurance solutions
Experience in blended finance or catalytic capital structures
Demonstrated underwriting and reinsurance placement experience

3. Team Composition and Key Personnel – 10%

Qualifications and experience of proposed actuaries and technical leads
Experience of team members in similar assignments
Regional experience, preferably in East Africa

D. Financial Evaluation Criteria (20%)

The Financial Proposal must be submitted as a separate document and shall include a detailed and itemized budget breakdown in Rwandan Francs (RWF) or United States Dollars (USD).

Financial proposals will be evaluated based on:

Cost reasonableness and competitiveness
Clarity of budget breakdown (design, monitoring, placement components)
Value for money relative to scope and technical depth

E. Local and Regional Experience Consideration

Preference may be given to firms demonstrating:

Proven operational presence in Rwanda or East Africa;
Familiarity with local insurance regulatory frameworks;
Experience working with regional insurers and reinsurers.

7. Submission Requirements

Interested entities should submit a technical and Financial proposal that includes:

A company profile and relevant track record;
A proposed approach to the co-design and implementation of the parametric solution;
Experience working with climate models, risk indices, or agricultural risk tools;
Team structure and CVs of key personnel;
Estimated budget and timeline;
Any additional materials or case studies demonstrating relevant work.

8. Call for proposal timeline

Milestone	Date
RfP Release Date	4th March 2026
Deadline for Clarification Requests	6th March 2026
Responses to Clarifications Issued	9th March 2026
Proposal Submission Deadline	19th March 2026 at 17:00 CAT
Technical & Financial Evaluation Period	1 week following the submission deadline
Expected Notification of Selection	27th March 2026

📧 For submissions and inquiries, contact: info@greenfund.rw

🔗 Full call for proposal document available in the attached document.

Apply here