Index Insurance Forum

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Satellite Technology and its continued advancement is critical to the relevance and accuracy of index insurance products as a counter against weather-related risks. The World Bank Group’s Global Index Insurance Facility (GIIF) in partnership with its regional partners has been working with researchers and scientists to refine satellite technology for index insurance product design.
MiCRO is a reinsurance provider based in Barbados. MiCRO currently provides natural catastrophe and weather index insurance to microfinance institutions (MFIs), which in turn insure low-income micro-enterprises.
The development of sustainable index-insurance markets requires enabling legal and regulatory environments The adoption of the “CIMA Book VII” on April 5th 2012 was a major milestone allowing and regulating the development ofmicroinsurance and index-insurance for 15 countries in the Inter-African Conference on the Insurance Market or CIMA region In addition to this regional regulatory change, the Global Index-insurance Facility (GIIF) has supported national insurance supervision agencies with this transition. In particular, GIIF has assisted the Senegalese Insurance Supervision Agency with...
While access to credit is a key instrument to alleviate rural poverty, microfinance institutions (MFIs) are often unable to expand their agriculture lending portfolio. One of the key constraints that MFIs face is the exposure of agriculture lending to shocks such as drought, flood, or locust which can put farmers in a situation where they are unable to repay their loans. Major agriculture shocks can indeed lead to loan defaults and bank runs therefore resulting in destruction of risk capital, reduced access to liquidity, decreased lending and sometimes insolvency. Evidence shows that credit...
For eight years, Chandrasiri Vanasunder, a small holderfamer in the Ratnapura district of Sri Lanka, bore the losses caused by drought and excess-rainfall on his 2-acre tea estate. But all that begun tochange in 2012, when a sales representative from Sanasa told him about ‘index-based insurance’ for tea plants. “As soon as I heard about the product, I knew that this was a good product. I have suffered severe losses in the past, and this seemed like a smart idea to help me prepare for future uncertainty.” Vanasunder’s judgment proved right, as approximately half -way through the last season,...
Having enough food in East Africa depends largely on the productivity of smallholder farms, which in turn depends on farmers’ ability to invest in their farms. Weather insurance can encourage farmers to make these critical investments by improving their access to credit. The Global Index Insurance Facility (GIIF)—an IFC/IBRD collaboration housed under IFC’s Access to Finance’s Global Retail/Microfinance Cluster—is an innovative program that is expanding access to insurance against weather risks and natural disasters to farmers, livestock herders, and others, particularly in Africa and the...
Under Mexico’s G20 Presidency, Vice Ministers/Deputies of Agriculture from the countries of the G20, and invited countries1 (the “G20 Agriculture Group”) met in Mexico City with the aim of articulating goals, focusing efforts and establishing sound commitments to address food security challenges under a global perspective.
Agriculture remains a source of livelihood for almost half of humanity. It is also a source of growth for national economies and can be a provider of investment opportunities for the private sector. However, millions of poor people face prospects of tragic crop failure or livestock mortality when, as a result of climate change, rainfall patterns shift or extreme events such as drought and floods become more frequent. Agricultural insurance is key in assisting farmers, herders, and governments lessen the negative financial impact of these adverse natural events.
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