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Drought Index-insurance Pilot for Maize Farmers - Benin

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.
Project type:

Drought index-insurance pilot for maize farmers

Requesting Agency:

Assurance Mutuelle Agricole du Benin

Project rationale:

The GIIF team was asked by AMAB to help develop drought index insurance. This pilot drew from the prior experience in Senegal.

Country context:

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.

Key achievements:
  • A feasibility study was completed in 2012 by an international consultant, CIRAD and recommended the development of index-insurance for maize in four specific zones.
  • In June 2012, the existing regulatory instruments were revised to include micro and agriculture index insurance, thanks to IBRD support (See CIMA Book 7), a national workshop to disseminate information was organized by the Benin regulatory authority and two applications for a license and visas on index-insurance were granted by the authority.
  • Two maize weather-based index prototypes were designed, and priced by the re-insurer “Swiss-Re”.
  • Five awareness and training workshops were provided to producers (about product features and claims management process), microfinance institutions and the local insurer AMAB (about product management and sales techniques)
  • The distribution process of index products (for two types of maize) started in June 2013, and about 210 farmers have bought the insurance policy
Key stakeholders:

Insurance Regulatory Agency (Direction des Assurances du Benin), Minister of Finance, Minister of Agriculture, PlaNet Guarantee, CIRAD.

Contacts:

Fatou Assah
Program Manager
World Bank group
Tel: + 1 202 473 6160
Fassah@worldbank.org