Index Insurance Forum


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Poor rainfall in parts of Africa has triggered the largest insurance payout to date for smallholder farmers under the R4 Rural Resilience Initiative (R4), a program launched by the World Food Programme (WFP) and Oxfam America in 2011. African farmers will receive insurance payments totaling US$1.5 million to compensate for weather-related crop losses in Ethiopia, Kenya, Malawi, Senegal, and Zambia, Reliefweb reports , according to a WFP press release.
The core objective of the project was to build the resilience of food-insecure smallholders through an integrated risk management approach which includes weather index insurance, assets creation , credit and savings interventions, and climate services.
The core objective of the project was to understand where the index-based insurance is functioning well and where it must be improved to provide outputs potentially valuable for index insurance mechanisms, applications, and reliable scalability.
The core objective the project was to contribute to enhancing the resilience of those people dwelling in drought-prone areas such as southern parts of Oromia region and Somali region through a series of surveys/studies and implementation of pilot projects.
Ethiopian pastoralists have received payouts for index-based livestock insurance offered by a local insurance company, Thomson Reuters Foundation reports . In Ethiopia, livestock insurance schemes were initiated by the International Livestock Research Institute, which has been providing technical support for the design and monitoring of the index in the country, the report adds.
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.
This report explores evidence and insights from five case studies that have made significant recent progress in addressing the challenge of insuring poor smallholder farmers and pastoralists in the developing world. In India, national index insurance programmes have reached over 30 million farmers through a mandatory link with agricultural credit and strong government support. In East Africa (Kenya, Rwanda and Tanzania), the Agriculture and Climate Risk Enterprise (ACRE) has recently scaled to reach nearly 200,000 farmers, bundling index insurance with agricultural credit and farm inputs...

ITV Sophia

Sophia Belay, Manager – R4 Rural Resilience Initiative, talks about increasing awareness of index insurance among farmers
We show theoretically that the presence of basis risk in index insurance makes it a complement to informal risk sharing, implying that index insurance crowds-in risk sharing and leading to a prediction that demand will be higher among groups of individuals that can share risk. We report results from Ethiopia from a first attempt to marketweather insurance to informal risk-sharing groups.