GIIF’s strategy is to build sustainable index insurance markets and promote innovative insurance solutions. Building new markets necessitates a multi-pronged approach which includes:
1) Financial Education: Public education and media promotion on index insurance for farmers, small businesses, MFIs, banks, distributors, and other clients as index insurance markets are still new and not well understood;
2) Capacity Building: Grants to research institutions, brokers, and NGOs to support training of local insurers and financial institutions on the design and distribution of index insurance policies, products, and claims process as well as to conduct feasibility studies;
3) Technical Advice on Products and Pricing: Advisory services from GIIF technical specialists and partners to design and develop appropriate index insurance products that meet and stimulate demand for insurance;
4) Public Policy Dialogue and Regulatory Environment Facilitation: Support the strengthening of legal, regulatory, and supervisory systems related to index insurance at both national and regional levels and the establishment of the pre-conditions necessary to launch and regulate agricultural index-based insurance products, with proper fiscal incentives and regulatory tools. It is essential to employ the correct mechanism during each stage of the development of the insurance market, creating the right incentives that increase demand for insurance while at the same time addressing market failures.
For more information on regional/country overviews where GIIF index insurance markets are emerging, see Sub-Saharan Africa, Latin American & the Caribbean, and Asia Pacific.