Global Index Reinsurance Facility Presented By : Richard Gyles Casablanca Nov 14, 2006

“Food as food” is used effectively by the Office of Food for Peace (FFP) and its partners for a variety of food security objectives (prevention of malnutrition, food for education; food for work; general relief, etc). However, agriculture (AG) and natural resources management (NRM) programs thus far remain largely dependent on monetization: tools, seeds, and the salaries of extension officers are paid with cash, not food. Yet, and as discussed below, “food as food” can play a legitimate role in AG programs, and powerfully complement cash-based interventions in this sector.

The broad structure of National Agricultural Insurance Scheme (NAIS), the main crop insurance program in India, is technically sound and appropriate in the context of India. The NAIS is based on an indexed approach, where average crop yield of an insurance unit, IU, (i.e., block) is the index used. The insurance is mandatory for all farmers that borrow from financial institutions, though insurance cover is also available to non-borrowers. The actual yield of the insured crop (as measured by crop cutting experiments) in the IU is compared to the threshold yield. If the former is lower than the latter, all insured farmers in the IU are eligible for the same rate of indemnity payout. Individual crop insurance would have been prohibitively expensive, or even impossible, in a country such as India with so many small and marginal farms. Further, the method of using an ‘area based approach’ has several other merits and, most importantly, it mitigates moral hazard and adverse selection.

EC approaches to Disaster Risk Reduction in Africa DevelopmentDG DevelopmentUnit B2 Unit –Policies for Sustainable Management of Natural Resources Presented by: Wim Olthof

This interim summary report has been produced by Aon Limited and ESYS plc under contract ESRIN/Contract No. 17814/03/I-LG: Earth Observation Responses to Geo-information Market Drivers – Insurance Segment. It summarises three deliverables on the use of geo-information in the insurance industry.

Drought Insurance for Farmers in Malawi Presented to the conference for Insurance and reinsurance for Natural catastrophes, Morocco,November 2006 -Chris Kapanga

The Moisture Stress Index for corn and soybean crops is a measure of the effects of drought and catastrophic wetness on national crop yield and is calculated through the use of a drought index (the Palmer Z Index) and annual average crop productivity values within each U.S. climate division. Moisture stress, either a lack or an abundance of soil moisture during critical phases of the crop growth and development cycle, affects US average crop yield, particularly when moisture stress occurs in the most highly productive crop growing areas. Soil moisture conditions in July and August were found to be the best indicators of average crop yield for corn and soybeans, and as such, are used in creating the Moisture Stress Index.

Thousands of farmers in Moiben, Eldoret have always known that drought comes after every 10 years. But every once in a while the pattern is broken and they are caught off-guard as was the case in 1984 and in 2009. However, in the midst of the dark clouds of hunger, there was a silver lining that got them smiling last year— a crop insurance product that promised to change their fortunes. This is a first for small-scale farmers in Kenya who produce more than 70 per cent of the country’s food output.

Climate Change and Crop Insurance in the United States OECD-INEA-FAO Workshop on Agriculture and Adaptation to Climate Change June 2012

Availability and Affordability of Insurance Under Climate Change Presentation to 2005 NAIC Winter Meeting Chicago - December 3, 2005 Evan Mills, Ph.D. U.S. Department of Energy Lawrence Berkeley National Laboratory University of California Berkeley, California - USA