Reports

Abstract

Access to modern, reliable and affordable energy is essential for development, especially in rural and off-grid communities across sub-Saharan Africa and Asia. needed to expand access to insurance and other financial risk-management tools. Insurance can stabilize incomes, reduce exposure to shocks and improve the financial resilience of households, businesses and DRE companies. However, its use in the energy-access sector remains limited and largely confined to pilots.

Five promising insurance concepts are assessed against core design principles: affordability, value, accessibility, scalability and alignment with national development goals. Examples include index insurance for end-users, such as a Zambia pilot bundling drought index insurance with PAYGo solar systems, and government-administered index insurance schemes in Uganda that help pool systemic risks. Life and health insurance bundled with PAYGo products in Kenya and