Index Insurance Forum

Sub-Saharan Africa

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The objective of Innovative Insurance Products for the Adaptation to Climate Change (IIPACC) is to assist the insurance sector in Ghana to develop and offer innovative, demand-oriented and economically viable insurance products to cover financial risks on account of crop losses caused by extreme weather events and impact of climate change.
The term “financial literacy” means having the knowledge, skills, and confidence to manage your finances well, taking into account your economic and social circumstances. People who are financially literate are able to make sound financial decisions for themselves and their families, to make informed choices between different financial products and services, to budget and to plan ahead, to build up some savings, to protect themselves against financial risks, to invest prudently and to understand their rights and responsibilities.
There is a range of reasons for establishing agricultural and climate risk insurance, including adaptation to climate change, food security, disaster risk management or social protection. Regardless of the motives, however, creating an effective insurance system inevitably cuts across various political spheres. Hence, the first key element is to create a broad consensus amongst policy makers and their commitment to creating an enabling policy environment that fosters the necessary infrastructure. This includes the integration of agricultural and climate insurance into respective national...
The core objective of Adaptation to Climate Change and Insurance (ACCI) is to enable farmers, cooperatives and other value chain actors to adapt to climate change.
Simon Kilgour and Mick McArdle at CMS Law-Now have penned an article suggesting that index insurance is gaining momentum in Africa. The article also discusses pros and cons of the innovative insurance provision.
In the latest volume of the African Reinsurer magazine published in June 2017, GIIF Program Manager Fatou Assah discusses how the World Bank is helping African farmers to become more resilient against climate risks through the use of index insurance. The article entitled "Technology and Insurance: Building Resilient Agriculture in Africa", which also interviews AXA's Tanguy Touffut, FINACTU's Denis Chemiller-Gendreau, and African Risk Capacity's Assia Sidibe, examines innovative risk management and insurance, challenges and opportunities in agriculture insurance in the face of climate change...
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.
Parametric insurance has the potential to serve a significant developmental role in Africa, as it pays out benefits based on a predetermined index for losses resulting from catastrophic events, Clyde & Co's Max Ebrahim and Wynne Lawrence wrote in Commercial Risk Online . In the article, GIIF's collaboration with ACRE Africa , which is serving the populations in Kenya, Rwanda, and Tanzania, is also cited.
At its Annual Meetings in Ahmedabad in May, t he African Development Bank (AfDB) identified political will as one of the key ingredients to the continent's agricultural agenda, AllAfrica reports . According to AfDB President, other key strategies the AfDB is proposing are the development of industrial agri-businesses to raise productivity in the sector and ultimately support economic growth. In addition, the region needs to support its young people who are providing weather index insurance and extension services.
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In May 2017, the International Livestock Research Institute (ILRI) was hailed as “Innovation of the Year” from the African Insurance Awards for its work on developing the index-based livestock insurance (IBLI) in the arid lands of Kenya and the Horn of Africa. Using Normalized Differenced Vegetation Index (NDVI) that monitors livestock stress and mortality based on grazing conditions, the innovation offers a more convenient, objective measure upon which insurance contracts can be written. Which such an index insurance, herders can recover losses more quickly during and after severe droughts...
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