Legal/Regulatory frameworks

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Geneva, Switzerland July 24, 2014 – The International Labour Office (ILO) and the World Bank Group (WBG) have signed a memorandum of understanding that aims to provide access to improved insurance products to hundreds of thousands of smallholder farmers, small businesses and individuals in Asia and Africa. The three year partnership is the first-of-its-kind within the rapidly evolving index insurance industry. The Facility and GIIF combine their strengths to improve the delivery of index insurance to farmers and their families as well as businesses, through extraction, dissemination and...
The World Bank Group signed an agreement marking the $25 million contribution by the Dutch Ministry of Foreign Affairs in support of scaling up insurance markets in developing countries over the next five years, thus helping to ensure that agricultural insurance becomes a sustainable business model for smallholder farmers.

ITV Richard

Richard Choularton, Chief - Climate Resiliance for Food Security at UN WFP, talks about using index insurance solutions to manage climate risk issues

ITV Jon

Jon Hellin, Value Chain and Poverty Specialist for CIMMYT, talks about climate risk management in agriculture
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.
The development of sustainable index-insurance markets requires enabling legal and regulatory environments The adoption of the “CIMA Book VII” on April 5th 2012 was a major milestone allowing and regulating the development ofmicroinsurance and index-insurance for 15 countries in the Inter-African Conference on the Insurance Market or CIMA region In addition to this regional regulatory change, the Global Index-insurance Facility (GIIF) has supported national insurance supervision agencies with this transition. In particular, GIIF has assisted the Senegalese Insurance Supervision Agency with...
As Rwandan farmers face increasingly erratic rainfall, an innovative program launched today will use automated weather stations to offer 20,000 farmers in the Southern and Western provinces of Rwanda low-cost insurance to protect their loans for high-yielding seeds, fertilizers, and other farm inputs.
52% of the population in Haiti lives in rural areas. However, Haitian agriculture historically remained unprofitable and financial credit to agriculture represents less than 1% of the total loan portfolio of banks. As a consequence, 60% of the food consumed in Haiti is imported. Agricultural production is severely affected by natural catastrophes such as excessive rain, hurricane strength winds, and droughts.
Argentina’s agriculture sector is very vulnerable to weather risks. For instance, cotton in the Chaco Province - the most important cotton producing area in Argentina and the third poorest province - is very exposed to drought, excess rainfall and pests. Similarly, cattle-rearing in southwest Buenos Aires Province is very exposed to droughts which impact severely on pasture production.
At the request of the Ministry of Finance of Senegal, a feasibility study was completed in 2009 to assess the potential of index insurance. This study recommended the development of weather-based index insurance for commercial farmers, and suggested a pilot for groundnut farmers in two departments – Nioro and Kaffrine. As a follow-up to these recommendations, CNAAS requested in 2011 financial and technical assistance from the World Bank in order to pilot-test index insurance for groundnut farmers. The objective of the pilot was 1) to test the operational and technical procedures of the...
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