Market Development

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Sustainable insurance solutions for agricultural and climate risk requires a joint effort of both the public and the private sector: the partners need to cooperate and commit to facilitating a market development process. Private insurance companies design appropriate insurance products, establish administrative processes and carry the risk. They invest financial and human resources and commit themselves to the agricultural and climate risk insurance markets. Government support that goes beyond creating an enabling regulatory environment can be critical to the sustainability of such systems...
Competitive markets are best geared to respond to farmers’ need and offer tailor-made insurance products. It is the government’s responsibility to ensure a level playing field. This is particularly important in countries where state-owned insurers compete with the private sector. Policymakers and the regulator have to create a framework that provides all market players, public and private, the same access to infrastructure and services, such as access to data on weather or agricultural production. In countries where premiums are subsidized, all insurance companies have to be eligible to...
Over the past 30 years in the Caribbean, floods and tropical storm damage affected 1.5 million people directly and caused over USD 5 billion in damage. The increasing frequency and intensity of extreme weather events stress societies and natural systems. Challenges 1. Affordability issues for the target low-income segment. Additional transaction cost and taxes. Also, even with this cost structure, insurers and distributors are not sufficiently incentivized to push the product. 2. Intensive marketing efforts and consumer education are needed to increase the scale of LPP. Technology...
There are two major challenges with respect to agricultural insurance in Ghana: 1. Enrollment : Scaling performance of the agricultural insurance market remains low (very few products). The growth rate of the sector is very slow (36% from 2011–2016). Very poor performances in 2012 and 2013 when overall enrolment dropped by 84% and 86% respectively. These challenges are attributable to the complexity of insurance products, financial illiteracy, and aversion towards new risk management approaches. 2. Claims : The only prominent claim pay-outs were in 2015 where 1,701 farmers received a payment...