Making agricultural and climate risk insurance gender inclusive: How to improve access to insurance for rural women

February 2020
IFAD’s technical assistance programme INSURED (Insurance for rural resilience and economic development) has been building knowledge about how to strengthen women producers’ access to climate risk insurance. 

INSURED - Insurance for rural resilience and economic development

January 2020

INSURED is a technical assistance programme working to strengthen agricultural insurance in IFAD’s portfolio.

Remote sensing for index insurance - Findings and lessons learned for smallholder agriculture

October 2017
Index insurance has a role to play in agricultural development and risk management, yet it faces operational and technical challenges to reach scale and sustainability. Data are a key challenge and were the focus of the project “Improving Agricultural Risk Management in Sub-Saharan Africa: Remote Sensing for Index Insurance”. Limited availability, accessibility, quantity and poor quality of data on the ground are some of the primary technical constraints preventing scale-up and sustainability of index insurance. Without sufficient quality data, either it is impossible to design products for some areas and countries, or products that are designed can become unreliable, not compensating when they should. These inconsistencies intensify vulnerability, lead to distrust of insurance, and ultimately have an impact on demand. This publication details the project, which investigated overcoming issues with ground data by using remote sensing data for index insurance. It describes the different remote sensing options and opportunities available for index insurance, but it also recommends further investment in research and development, supplementary ground data and capacity-building going forward. 

Creating pathways out of poverty in rural areas: Managing weather risk with index insurance

August 2015
The International Fund for Agricultural Development (IFAD) and the World Food Programme (WFP) have joined forces to reduce the vulnerability of poor rural people to extreme weather events that can be devastating to agricultural productivity. With support from the Bill and Melinda Gates Foundation, IFAD and WFP are working to improve the access of poor rural people in developing countries to index-based weather insurance. This type of insurance can help them cope better when extreme weather hits, and can open the door to other financial services, in particular credit.

Process Mapping for Microinsurance Operations: A Toolkit for Understanding and Improving Business Processes and Client Value

October 2012

This manual is intended as an aid to microinsurance institutions. It presents a technique called ‘process mapping’ that can support institutions in self-analysis by assisting them in understanding, developing and improving business processes. Although the concepts presented may be used for many types of projects and processes, this manual was specifically developed as a supplement to Microinsurance product development for microfinance providers (McCord 2012).

The manual describes how a process map can be drawn, analysed and adapted for the microinsurance sector. It offers practical guidance about which processes to concentrate on, and guides the reader through the task of improving these processes, first on paper and then in practice. For more information please click on the link below.

Microinsurance Product Development for Microfinance Providers

October 2012

This document is intended to aid delivery channels, microfinance providers in particular, in working with insurance companies to develop successful microinsurance products for the low-income market. 

A systematic new-product development process is crucial to the success of microinsurance products for many reasons, including: Saving money – by maximizing the potential for product success; Saving management and staff time – by ensuring, within reason, that the product has market demand, and by working out staff and systems issues early in the process, when it is easier and cheaper to make changes; Generating goodwill in one’s market – by offering products that will not have to be withdrawn or substantially altered once they are offered throughout the market. The process outlined in this manual will help microinsurance developers create successful microinsurance products. ‘Success’ means meeting the needs of the three major parties in the microinsurance relationship: low-income policyholders, the insurer and delivery channels.

Weather Index-based Insurance in agricultural development: a technical guide

November 2011

Poor rural people in developing countries are vulnerable to a range of risks and constraints that impede their socio-economic development. Weather risk, in particular, is pervasive in agriculture. 

Managing weather risk for agricultural development and disaster risk reduction

January 2011

Nearly 1.4 billion people live on less than US$1.25 a day. Seventy per cent live in rural areas where they depend on agriculture, but where they are also at risk from recurrent natural disasters such as drought and flooding. Natural disasters have a devastating impact on the food security and overall social and economic development of poor rural households. 

According to data from Munich Re’s NatCatSERVICE, natural disasters account for losses, on average, of US$51 billion in developing countries every year. Unless well managed, weather risks in agriculture slow development and hinder poverty reduction, ultimately resulting in humanitarian crises. Poor farmers have few options for coping with significant losses, and in order to reduce their exposure to risk, they often forgo opportunities to increase their productivity. 

 

The potential for scale and sustainability in weather index insurance for agriculture and rural livelihoods

March 2010
Risk is inherent in agriculture. Farmers face a variety of market and production risks that make their incomes unstable and unpredictable from year to year.