Can you give us some examples of key trade-offs that you have faced when providing technical support to the overarching policy discussion on regulation of index insurance in Kenya? The first trade-off that we have faced was in the definition of insurable interest. In the law of insurance, the insured must have an interest in the subject matter of his or her policy, or such policy will be regarded as a form of gambling. However, in Kenya most farmers do not own their land as they work on communal farms or as wage laborers. We therefore decided in our policy framework to define the insurable
What do you think of the upcoming index insurance regulation in Kenya? Well, at this stage, I think we have drafted a policy paper which sets guidelines for the future regulations , however I believe that we have here an opportunity to enhance access to insurance in Kenya. What are the expected benefits? One of the key expected benefits is the creation of a consumer protection framework. This means that index insurance products will need to be explained very clearly and in a simple way, and all the contract terms (ex: triggers, reference weather stations, index design etc...) will have to be
2 Million African Farmers Insured For Weather & Catastrophe Risks: Swiss Re
One of the world’s largest reinsurance firms, Swiss Re, recently announced that two million African smallholder farmers are now protected against drought, floods and other natural perils, thanks to the efforts of the World Bank and Swiss Re Corporate Solutions.Back in 2012, Michel Lies, Swiss Re’s Chief Executive Officer (CEO) made a commitment that by 2017 it would protect 1.4 million African smallholder farmers from weather and catastrophe risks, through increased insurance protection. And now the Switzerland-based reinsurer has revealed that not only has the amount of farmers covered
Index Insurance Takes Root as Climate Change Stings Agriculture
Big players such as Swiss Re plan to offer farmers in Africa, Asia and other emerging markets insurance products linked to weather indexes. Wagering on the weather might become a global business. Just ask the Climate Corp., an underwriter of insurance plans for farmers. Full article here
Breaking the ICE: The Role of Insurance Associations in Insurance Consumer Education
In the last decade, some insurance associations (IAs) have expanded beyond their traditional core functions to develop insurance consumer education (ICE) programmes. Based on a review of the experiences of IAs in five countries, namely Brazil, Colombia, Kenya, Mexico and South Africa, Microinsurance Paper #31 discusses the steps that should be taken during the preparation of an ICE. These include assigning responsibility internally, defining funding mechanisms, setting clear goals, defining the programme target and identifying partnership opportunities. It goes on to summarize key lessons for
Scaling up index insurance for smallholder farmers: Recent evidence and insights
This report explores evidence and insights from five case studies that have made significant recentprogress in addressing the challenge of insuring poor smallholder farmers and pastoralists in thedeveloping world. In India, national index insurance programmes have reached over 30 million farmersthrough a mandatory link with agricultural credit and strong government support. In East Africa (Kenya,Rwanda and Tanzania), the Agriculture and Climate Risk Enterprise (ACRE) has recently scaled to reachnearly 200,000 farmers, bundling index insurance with agricultural credit and farm inputs. ACRE
IFC, EU and Syngenta Foundation to Expand Weather Insurance to One Million East African Farmers
GIIF, a member of the World Bank Group, signed two grant agreements, with a combined value of $3.9 million, with the Syngenta Foundation for Sustainable Agriculture to expand index-based insurance to small-scale farmers in Kenya, Rwanda and Tanzania. Index-based weather insurance can protect against the adverse effects of climate change and help to strengthen food security in rural communities.
Sophia Belay, Manager – R4 Rural Resilience Initiative, talks about increasing awareness of index insurance among farmers
Index Insurance Creates Steady Income for Kenyan Farmers
For Jeremiah Kithaka, farming maize on his three acre farmland is the primary source of livelihood enabling him to provide for his family of four. However, with changing rainfall patterns, delayed starts to the rainy seasons and longer and more frequent dry periods, Jeremiah has seen vast volatility in his income levels over the past few years.