InFocus: Innovation and Technology - Ghana

Before 2011, agricultural insurance was not available to Ghanaian farmers. The cost of carrying out loss adjustments on small plots of land was too high for insurance companies to generate profits. The market lacked the impulse and knowhow to develop products that addressed the needs of farmers, for example through innovative weather index insurance solutions. The development of weather index insurance relies on the availability of weather data, both for the development of products and verification of claims. The low density of weather stations in Ghana presented a major challenge when introducing a country-wide insurance scheme purely based on weather station data.