Meso-level

Experiences in index-based insurance for farmers: lessons learnt from Senegal and Bangladesh

Content owner:

Proparco's Private Sector & Development

Author:

Chloe Dugger and Rachel Sberro

Language:

English

Topics:

In Proparco's Private Sector & Development magazine, Chloe Dugger, Operations Officer in WBG's Finance and Markets Global Practice, and Rachel Sberro, Research Analyst on agriculture finance, write about WBG's Global Index Insurance Facility's experiences with index-based insurance in Senegal and Bangladesh. Their article focuses on micro- and meso-level approaches to distributing agricultural index insurance, which speeds up claims settlement by dispensing with loss assessments and payouts are determined on an objective basis, eliminating the risk of fraud. Please visit Proparco's...

Her Majesty Queen Máxima of the Netherlands Quotes Kilimo Salama as an Example for Microinsurance Programs

Thu, 09/01/2016

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In an address to an audience at an Adaptation Futures 2016 plenary session in Rotterdam, UN Special Advocate for Inclusive Finance for Development, Her Majesty Queen Máxima of the Netherlands said financial services that are inclusive would enhance the vulnerable populations’ ability to escape poverty. Financial inclusion is particularly important for smallholder farmers. Without access to credit, they could become caught up in activities with declining productivity and incomes. Along with savings and remittances, insurance is an important financial instrument that helps smallholder farmers...

Apr

Register Now! Webinar on Meso-level Distribution: Opportunities and Challenges

Topics:

General

Product distribution

Meso-level

Year:

2015

Join us for a Webinar on Thursday, 16 April 2015, 14:30 to 15:45 CEST/ 8:30 AM EST Register here The sustainability of agriculture insurance programmes relies primarily on reaching scale and controlling the costs of distribution. With this in mind, insurers are designing meso-level insurance policies that cover the entire portfolio of an aggregator. But while there are promising gains, there is still much to learn from implementing these solutions to achieve scale and efficiency. Jointly organized by the Global Index Insurance Facility and the ILO’s Impact Insurance Facility, this webinar...

Apr

Can Groups help Sell Insurance?

This emerging insight was produced by the Impact Insurance Facility in collaboration with the Global Index Insurance Facility as part of the partnership between the World Bank Group and the ILO

Product distribution Meso-level

Insurers are trying to control costs and reach scale in agriculture insurance by designing meso-level insurance policies that cover large numbers of farmers associated with an aggregator (e.g. agribusiness firm, financial institution, input providers). Products are priced using a portfolio pricing model, meaning that the price is calculated on the basis of the whole group. This avoids the cost of assessing individual plots. A project in Mozambique supported by GIIF and implemented by reinsurance broker, Guy Carpenter, used a meso-level approach to cover cotton farmers through a public-private...

Can Weather Index Insurance Increase Finance for Smallholder Farmers?

Wed, 01/14/2015

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Smallholder farmers need finance. According to a recent report of 1,800 banks conducted by the Initiative for Smallholder Finance – “ Local Bank Financing for Smallholder Farmers: A $9 Billion Drop in the Ocean ” - local banks in developing countries are currently lending approximately $9 billion to smallholder farmers compared to a total estimated demand of $300 billion globally for smallholder finance ($450 billion if China is included) . Although smallholder farmer financing also occurs through MFIs and non- financial intermediaries like supply chain participants, cooperatives and...

Interview with Peer Stein: Index Insurance Is For Farmers What Credit Scoring Was For Consumer and Small Bank Lending

Tue, 01/13/2015

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Is index insurance poised for a great leap forward similar to the rapid growth experienced by microfinance and credit bureaus in the 1990s? Index insurance clearly holds a lot of promise to help unlock productivity gains and protect farmers all around the world. Index insurance is for insuring farmers, MSMEs and individuals what credit scoring was for consumer and small business lending - a huge opportunity to make financial services much more widely available at lower cost by using smart analytics and data. In this sense, index insurance may be even more promising than microcredit because...

IFC, EU and Syngenta Foundation to Expand Weather Insurance to One Million East African Farmers

Tue, 01/13/2015

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Catastrophe weather derivative

Country:

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.

World Bank Group Global Index Insurance Facility Receives $25 Million from the Dutch Ministry of Foreign Affairs

Mon, 01/12/2015

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General

Data

Satellite data

Legal/Regulatory frameworks

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.