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Sompo Japan Nipponkoa Insurance will start selling insurance products that compensate farmers hit by drought in Indonesia as early as this fall, Asian Nikkei Review reports . With a premium of 50,000 rupiahs ($3.76), contract farmers will be entitled to be compensated 500,000 rupiahs if a drought occurs, the newspaper also details.
Accra, Ghana, 27 April 2017 – IFC, a member of the World Bank Group, and Africa Reinsurance Corporation supported a two-day technical workshop on risk modeling and strategic decision-making for index insurance products. Most of the agricultural land in Sub-Saharan Africa is rain-fed, and many regions are vulnerable to climate shocks such as drought, flooding, and irregular rainfall. To limit their losses in any given year, smallholder farmers often invest very little into their land, which leads to reduced yields and contributes to food insecurity. Insurance can be a good risk management tool...
The International Finance Corporation (IFC) and specialist reinsurance company Reasuransi MAIPARK Indonesia have agreed to develop insurance products to help local farmers mitigate weather-related risks, Jakarta Globe reports . The agreement will establish insurance schemes that pay out benefits to farmers if a weather event exceeds levels in a predetermined index — which will measure rainfall levels, temperatures, wind speeds and crop yields, expected to provide cheaper and less complicated insurance benefits to farmers in the event of a natural disaster. "The region's changing climate has...
IFC, a member of the World Bank Group, and PT Reasuransi MAIPARK have agreed to jointly develop index-based insurance products to hedge risks against adverse weather events for agribusinesses, bank agriculture-loan portfolios, and farmer groups. The impacts and effects of adverse weather events—such as droughts, floods, and hurricanes—were felt during the most recent El Niño, when some of the worst hit agribusinesses reported up to 30 percent drops in projected yields. IFC will support MAIPARK—a special-risk reinsurance company—to work with local insurance companies to develop, sell, and...
Index insurance, water harvesting, diverse cash crops, land management, new technologies, and community-based approaches are expected to enhance Ethiopia’s resilience to climate change, according to UN Development Programme. “The Government of Ethiopia has recognized its vulnerability and has been working hard to pursue climate resilient development growth,” said Ethiopia’s Deputy Prime Minister Demeke Mekonnen speaking at a high-level humanitarian meeting in early 2017. Read more here .
Pacific Island countries will have better access to catastrophe insurance to reduce financial impacts in the aftermath of natural disasters, including major cyclones, earthquakes and tsunamis, as a result of a new regional disaster risk finance project in Fiji, a World Bank's press release reports . The US$29.73 million project - PCRAFI: Furthering Disaster Risk Finance in the Pacific - builds on eight years of regional collaboration through the Pacific Catastrophe Risk Assessment and Insurance Initiative (PCRAFI), and shared experiences from similar catastrophe risk pools supported by the...
At the 9th Consultative Forum on Insurance for Smallholder Farmers in March 2017 in Singapore, Craig Thorburn, World Bank Group's Lead Financial Sector Specialist, said while beneficial and expanding across the globe, it is essential that there be great supervision for index-based or parametric insurance. “Policymakers, insurers, and regulators should sit together to develop new strategies and index-based insurance solutions,” said Dr. Yoshihiro Kawai, Secretary General of the International Association of Insurance Supervisors (IAIS), Artemis reports .
Driven by the success of its parametric solutions, AXA accelerates the development of these products by launching AXA Global Parametrics that will broaden the range of solutions to better serve existing customers and expand its scope to SMEs and individuals. To lead this new entity, Tanguy Touffut, previously Global Head of Parametric Insurance at AXA Corporate Solutions, was appointed CEO of AXA Global Parametrics, effective March 1st. Parametric insurance is based on the use of a parameter correlated to a client’s damages or losses. A wide variety of risks can be covered through parametric...
Tens of thousands of smallholder farmers in Ethiopia have benefited from the country's first weather index insurance payment to cover the loss for the previous year's crop failure due to El Nino, AllAfrica reports . The weather index insurance payouts of 2.6 million birr were part of the pilot insurance initiative supported by UNDP, the Global Environment Facility, the country's Ministry of Environment, Forest and Climate Change.
A $1.4 million grant from USAID is funding a University of California's project that will use a randomized, controlled trial to evaluate the impacts of combining programs that offer training, support, and aid with affordable insurance in Kenya. According to UC Davis , the new project is led by Michael Carter, a professor of agricultural and resource economics and director of the Feed the Future Innovation Lab for Assets and Market Access at UC Davis, and Dr. Andrew Mude from the International Livestock Research Institute (ILRI) in Kenya. Last year, Dr. Mude received the World Food Prize...
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