Insuring Crops of Countries and States with Weather Index Solutions
"Significant crop shortfalls observed in various parts of the globe in recent years have had an adverse impact not only on the agricultural sector of countries but also on many other economic sectors related to agriculture, such as logistics, storage, and processing industries," a Swiss Re Corporate Solutions' publication concludes. In "Insuring Crops of Countries and States with Weather Index Solutions", Swiss Re suggests index insurance be a good tool for states and countries to protect their agricultural sector from weather risks due to the product's high efficiency and light administrative
Parametric Insurance: Closing the Protection Gap in Africa
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.
Agricultural Index Insurance Gains Momentum in Sub-Saharan Africa
Reinsurance and insurance stakeholders in Sub-Saharan Africa say momentum for index insurance solutions in the region continues to grow, Reinsurancenews reports. Speaking ahead of the 10th Consultative Forum on building disaster resilience amongst small-scale farmers through agricultural index insurance, FSB Chair of the IAIS Regional Committee for Sub-Saharan Africa, said: “agricultural index insurance in Sub-Saharan Africa is gaining momentum."
IFC, Africa Re Develop Index Insurance Products to Increase Access to Finance for Farmers
Accra, Ghana, 27 April 2017 – IFC, a member of the World Bank Group, and Africa Reinsurance Corporation supported a two-day technical workshop on risk modeling and strategic decision-making for index insurance products. Most of the agricultural land in Sub-Saharan Africa is rain-fed, and many regions are vulnerable to climate shocks such as drought, flooding, and irregular rainfall. To limit their losses in any given year, smallholder farmers often invest very little into their land, which leads to reduced yields and contributes to food insecurity. Insurance can be a good risk management tool
IFC, MAIPARK to Develop Index-Based Insurance Schemes to Mitigate Weather Risks for Local Farmers
The International Finance Corporation (IFC) and specialist reinsurance company Reasuransi MAIPARK Indonesia have agreed to develop insurance products to help local farmers mitigate weather-related risks, Jakarta Globe reports. The agreement will establish insurance schemes that pay out benefits to farmers if a weather event exceeds levels in a predetermined index — which will measure rainfall levels, temperatures, wind speeds and crop yields, expected to provide cheaper and less complicated insurance benefits to farmers in the event of a natural disaster. "The region's changing climate has
Ethiopia: Reversing the Cycle of Risk
Index insurance, water harvesting, diverse cash crops, land management, new technologies, and community-based approaches are expected to enhance Ethiopia’s resilience to climate change, according to UN Development Programme. “The Government of Ethiopia has recognized its vulnerability and has been working hard to pursue climate resilient development growth,” said Ethiopia’s Deputy Prime Minister Demeke Mekonnen speaking at a high-level humanitarian meeting in early 2017. Read more here .
Index Insurance Requires Greater Supervision
At the 9th Consultative Forum on Insurance for Smallholder Farmers in March 2017 in Singapore, Craig Thorburn, World Bank Group's Lead Financial Sector Specialist, said while beneficial and expanding across the globe, it is essential that there be great supervision for index-based or parametric insurance. “Policymakers, insurers, and regulators should sit together to develop new strategies and index-based insurance solutions,” said Dr. Yoshihiro Kawai, Secretary General of the International Association of Insurance Supervisors (IAIS), Artemis reports.
AXA launches AXA Global Parametrics
Driven by the success of its parametric solutions, AXA accelerates the development of these products by launching AXA Global Parametrics that will broaden the range of solutions to better serve existing customers and expand its scope to SMEs and individuals. To lead this new entity, Tanguy Touffut, previously Global Head of Parametric Insurance at AXA Corporate Solutions, was appointed CEO of AXA Global Parametrics, effective March 1st. Parametric insurance is based on the use of a parameter correlated to a client’s damages or losses. A wide variety of risks can be covered through parametric
Result Stories: Mali
In a new GIIF Result Stories, Ms. Bintou Diakite, a founding president of ASEDEFE-YDADE (Association pour la Solidarité, l’Entraide, le Développement Economique de la Femme et de l’Enfant), recounts how index insurance has set female farmers free from the consequences of mishaps due to climate disaster. The Result Stories is part of a new bilingual series produced in 2017 to capture farmers' experiences with index insurance in Burkina Faso, Mali, and Senegal.
ACRE Africa, a GIIF partner in East Africa, is a microinsurance product designer that helps foster equity, fairness, and innovation in the agricultural sector. As farmers in the region experience changing weather conditions, with delayed rain and more frequent incidents of drought, ACRE Africa engages stakeholders along the agricultural value chain and advises insurers on the development and distribution of low-cost insurance to protect smallholders’ investments. The following story is told by one of the beneficiaries of ACRE Africa. Jacinta Mutuse is a 36-year old farmer and the mother of one