Financial Literary

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Insurance – though no panacea for climate change-related extreme weather events – can serve as a measure for adaptation of vulnerable populations to climate change. People that are especially vulnerable to climate change predominantly rely on traditional coping mechanisms, such as the use of savings. However, these traditional measures are often insufficient and can lead to a negative impact on their overall resilience in the long term. Insurance could serve as one measure to cover losses occurring from an extreme weather event but the vulnerable population are often not familiar with...
The Peruvian agricultural sector, which is fundamentally important to the national economy, is particularly affected by natural hazards caused by climate change. Insurance as a possible risk management strategy has received only little attention so far (both by clients and by the industry) due to the following reasons. Limited experience with financial products including insurance. Overall lack of understanding of and interest in (climate) insurance among most stakeholders. Widespread lack of trust in insurance companies amongst the population. Lack of investigation and research with respect...
Insurance literacy and general awareness on insurance is very low amongst the majority of small scale farmers as well as potential intermediaries in Kenya. This hampers the development of a private-sector driven insurance market. Spreading awareness of insurance and interventions in order to improve insurance literacy among clients have been left so far to the insurance companies and their sales structures. The Insurance Regulatory Authority (IRA) is only sporadically involved. This has obvious cost implications for the private sector. As a consequence, information has mainly been provided to...
The success of agricultural insurance depends on the demand by farmers. But while there is clearly a need for agricultural insurance, demand is not high among low-income farmers. A major factor is that the farming community has a low level of awareness about insurance. A key component within any agricultural insurance initiative is to educate farmers about the importance of insurance and how the products help them overcome difficult times. It is equally important to show farmers the limitations of insurance in order to not create unrealistic expectations