Benin is a small country with a population estimated at just under 10 million in 2011, and the national economy relies on the agriculture sector, in particular on cotton. Indeed, the agriculture sector accounts for about 32% of GDP and is the source of livelihood for nearly 70% of the country’s workforce. As part of its Growth and Poverty Reduction Strategy (2011-2015), Benin has identified agricultural diversification and improved agricultural productivity as two key priorities.
PlaNet Guarantee provides satellite based weather index insurance and area yield index insurance products for maize and cotton farmers in Benin. MFIs are the main distribution partners. The work of PlaNet Guarantee in Benin started in 2012 with awareness raising activities for MFIs and the first products were sold in 2013.
Reinsurers: Swiss Re
Delivery Channels: MFI
Satellite-based weather index insurance
10% ; $11 per farmer
$62,400 in Benin, Burkina Faso, Senegal and Mali (2013)
No data available yet
Based on its initial work in Mali and Burkina Faso, PlaNet Guarantee launched additional products in Senegal in 2012 and in Benin in 2013. This expansion accounts for about one fifth of the premium volume generated by PlaNet Guarantee up to the end of 2014.
MFIs in Benin have experienced high non-performing loans, in particular during 2013. This experience has led some MFIs to disburse loans after the start of the crop cycle (or not at all), which makes insurance sales difficult.
PlaNet Guarantee is partnering with the largest MFI in Benin, FECECAM, which has a large network of branches throughout the country.
Sebastien Weber: email@example.com