Daniel Osgood of the International Research Institute for Climate and Society presented on index-based insurance projects that have reached farmers at scale at the workshop on Mobilizing a CGIAR Agricultural Insurance Community in Washington, DC, 20-22 January 2014, hosted by the International Food Policy Research Institute and the CGIAR Research Program on Climate Change, Agriculture and Food Security (CCAFS). Read more about CCAFS work on index-based weather insurance: http://bit.ly/Ll7Z7Z

1. Learning
how
to
make
insurance
that
is
popular
with
smallholder
farmers:
Insights
from
some
projects
that
scale
Daniel
Osgood
Lead,
Financial
Instruments
Sector
Team
Columbia
University
IRI

2. The
Issue
• Index
insurance
hoped
to
meaningfully
reduce
poverty
at
large
scales
• Scaling,
demand,
impacts
of
many
projects
“disappoinDng”
• Some
projects
have
elements
that
do
not
“disappoint”
• What
can
we
learn
from
these
projects?
• How
can
we
build
insurance
that
is
popular
with
farmers?
(has
value
to
farmer,
can
scale,
posiDve
impacts)

3. What
is
insurance
for?
• Climate
change:
more
bad
years
• AdaptaDon:
increase
producDvity
in
normal
years
to
cover
bad
year
loss
• But
strategies
that
increase
producDvity
in
most
years
face
increased
risk
in
bad
years
• Threat
of
1
drought
year
out
of
5
prevents
other
4
from
being
much
more
producDve
• Key
to
adaptaDon
is
to
relax
risk
of
bad
year
to
unlock
producDvity
opDons
• Insurance:
help
reduce
risk
to
unlock
producDvity

4. Why
index
insurance?
• Insurance:
reduce
risk
to
unlock
producDvity
• But
problems
with
tradiDonal
insurance
have
made
it
tough
to
implement
• Recent
index
innovaDon
Insure
weather
index
•
•
•
•
eg:
provide
payout
if
there
is
drought
Cheap,
“easy”
to
implement,
good
incenDves
Many
limitaDons-­‐-­‐oVen
doesn’t
pay
when
farmer
faces
loss
Different
families:
Weather
index,
Area
yield
index
• SDll
in
early
years

5. Why
so
tough?
• Insurance
too
expensive
if
it
doesn’t
unlock
opportunity
or
if
displaces
more
effecDve
tool
• What
chances
to
take?
• High
yielding
seed?
TransplanDng?
• Early
season
/
Late
season
drought
probability?
• Basis
risk
not
simple:
does
insurance
help
reduce
risk
enough
to
take
these
opportuniDes?
• Must
solve
sophisDcated
problems
together
to
design
and
validate
insurance

6. Why
me
(at
IRI)?
• InternaDonal
Research
InsDtute
for
Climate
and
Society
• Enhance
socieDes
ability
to
understand
and
manage
climate
risk
• IRI
worked
since
‘early
days’
of
index
insurance
• Solid
science
base,
working
with
farmers,
partners,
processes,
capacity
building
and
training,
policy
• Connect
the
experiences
from
many
project
partners
• ArgenDna,
Bangladesh,
Dominican
Republic,
Ethiopia,
Ghana,
Honduras,
Indonesia,
Kenya,
Malawi,
Mali,
Nicaragua,
Nigeria,
Philippines,
Rwanda,
Senegal,
Tanzania,
Uganda,
Uruguay
• Experience
with
popular
quickly
scaling
products
• Tens
of
thousands
of
farmers
individually
chose
to
buy
indexes
• Significant
posiDve
impacts

7. Partners
around
the
world

8. Connecting
experiences
in
indexes
1. ወደ አዲስ ቀበሌ መነሻ ጉብኝት — Index Insurance Sample Educational Exercises 2.0.0 documentation
12/7/12 1:11 AM
በውይይቱ መጨረሻ ሁሉነም ጥያቄዎችና ያልተዳሰሱ ጉዳዮች ያዳርሱ። በመቀጠልም ቡድኑ በኢንዴክስ ዝግጅት ሂደቱ መስማማት
አለመስማማታቸውን እጅ በማውጣት እንዲገልጹ ያድርጉ። በመጨረሻም ከላይ በተመለከተው መሰረት በመግለጫ 4: “የኢንዴክስ
መረጃ መሰብሰቢያ ቅጽ” ላይ መገልበጥ ያለባቸውን የጥያቄ መልሶች በቅጹ ላይ ይገልብጡ።
CAPÍTULO 2
ተጨማሪ ሀሳብ ካካባቢው ህብረተሰብ ጋር አብሮ መስራት የሚያስችል ተጨማሪ ምክሮችና መመሪያዎችን ወደ አዲስ መንደር መነሻ
ሀሳብ:
ጉብኝትበሚከተሉት ክፍሎች ይመልከቱ፧ መግለጫ ቁጥር 5፡ካካባቢው ህብረተሰብ ጋር አብሮ በሚሰራበት ወቅት መደረግ
የሚገባቸውና መደረግ የሌለባቸው አምስት ዋና ዋና ነጥቦች። መግለጫ ቁጥር 6፡ዝርዝር ማጣሪያ: ወደ አዲስ መንደር መነሻ ጉብኝት
ከመደረጉ በፊት መዘጋጀት ያለባቸው ማስረጃዎች።
s
Riesgo climático y oportunidade
2. መግለጫ
2.1 Tema: Riesgo climático y opor
tunidades
1፡
2.1. መግለጫ 1፡ ከኢንዴክስ ዲዛይን ዝግጅት ቡድን አባላት ግለሰባዊ መረጃ
መሰብስቢያ ጥያቄዎች
2.1.1 Objetivo
una serie de ejemplos basados en compropósito guiar al usuario a través de
Los siguientes ejercicios tienen como
agricultor se puede enfrentar al tomar
los tipos de alternativas a las que un
una idea general de algunos
paraciones costo-benefico que ilustran
climáticos. El ejercicio también provee
de los riesgos
s
decisiones con respecto a la gestión
en base a índices. Los siguientes capítulo
de riesgos climáticos y de seguros
año hay
de los principios básicos de la gestión
documento suponemos que en cada
introducidos. Para el propósito de este
elaborarán los conceptos aquí
solamente una temporada agrícola.
ከዚህ በታች የተዘረዘሩት ጥያቄዎች የቀበሌው አባላት በሀብት/ንብረት፣ በውሃ አጠቃቀም፧ በገቢ ምንጭ እንዲሁም ድርቅን በመቋቋም
አቅም ምን ያህል እንድሚለያዩ ለማወቅ ይረዳሉ። ሀብት/ንብረት፣ የውሃ አጠቃቀም፧ የገቢ ምንጮች እንዲሁም ድርቅን የመቋቋም
2.1.2 Introducción
de tipo climático, los cuales hacen
en desarrollo se ve limitada por riesgos
La productividad agrícola en los países
climáticos adversos como sequías o
tes o semillas de alta calidad. Eventos
vos,
que los agricultores no utilicen fertilizan
agricultores y destruyen activos producti
dad alimentaria, endeudan a los
inundaciones a menudo provocan inseguri
a la gente hacia una situación de pobreza
fenómenos son capaces de empujar
a hace que la gente y
como por ejemplo animales. Estos
”, la amenaza de la variabilidad climátic
ente “buenos
persistente. Pero incluso en años relativam
a aumentar la productividad. Esto se
o soliciten préstamos, que podrían ayudar
las instituciones no hagan inversiones
r totalmente una inversión. Como
como un periodo de sequía, podría inutiliza
años buenos.
debe a que un evento climático adverso,
aprovechar todos los beneficios de los
res no pueden
consecuencia, es frecuente que los agriculto
que intentan reducir los impactos
en gestión de riesgo climático son aquellas
En el sentido más básico, las acciones
Por ejemplo, los seguros pueden
de vida.
CHAPTER
extremos en las vidas y los medios
años
del clima y de los eventos climáticos
s, protegiéndolos de los riesgos de los
los agricultores en los años normale
THREE a índices son una herramienta
ayudar a mejorar la productividad de
en base
el crecimiento económico. Los seguros
A diferencia de los seguros
peores, proveyendo así una base para
de riesgo.
res pueden utilizar para una mejor gestión
relativamente nueva que los agriculto
nes climáticas, como la caída en
en base a las consecuencias de las condicio
de cultivo tradicionales, los cuales pagan
índice, tal como la cantidad de lluvia,
en base a índices pagan en base a un
rendimiento de un cultivo, los seguros
el
de satélite. Los seguros en base a índices
meteorológicas locales o por medio
que puede ser medida en estaciones
de riesgos climáticos y en instrumentos
más amplio de herramientas de gestión
riesgos de
pueden ser integrados en un conjunto
para disminuir la vulnerabilidad a los
3.1 Topic: Climate específicamente como un paquete de medidas
lo diseñados Risk and Opportunities
de desarrol
las personas.
do los medios de vida y las vidas de
tipo climático de los agricultores, mejoran
CLIMATE RISK AND
OPPORTUNITIES
3.1.1 Objective
The following exercise is
intended to guide the user
through a series of trade
a farmer may be faced with
offs that illustrate the types
when making decisions
of choices that
regarding weather risk manage
a general overview of some
ment. The exercise also
of the basic principles of
provides
climate risk management
chapters will elaborate on
and index insurance. The
the concepts introduced
following
here.
3.1.2 Introduction
Agricultural productivity
in developing countries
is blocked by weather related
fertilizer and high quality
risks that prevent farmers
seeds. Climate shocks
from using
like droughts and floods
the destruction of product
often lead to food insecuri
ive assets, such as plow
ty, debt and
animals, which can push
in relatively “good” years,
people into persistent poverty
the threat of climate shocks
. But even
makes people and instituti
investments or to take out
loans that could help to
ons unable or unwilling
increase productivity, because
to make
could render their investm
a climate shock, such as
ents worthless. As a result,
a drought,
farmers are often unable
to reap the full benefits of
In the most basic sense,
good years.
climate risk management
efforts are those that try
climate extremes can have
to reduce the impacts that
on lives and livelihoods.
weather and
For example, insurance
in normal years by protecti
can help enhance product
ng them from the risks
ivity for farmers
of the worst years, providin
Index insurance is a relativel
g a foundation for econom
y new tool that farmers
ic growth.
can use to help manage
which pays out based on
risk. Unlike traditional
consequences of weather
crop insurance,
, such as farmer’s crop
an index, such as rainfall,
yields, index insurance
which can be measured
pays out based on
at a local weather station
integrated into a broader
or by satellite. Index insuranc
set of climate risk manage
ment and development tools
e can be
decrease farmers’ vulnera
specifically designed as
bility to weather-related
a package to
risks, improving lives and
livelihoods.
3.2 Checkpoint: Clim
ate Risk and Opportuni
Questions
ties
1. You are a farmer and
you decide to take out a
loan to buy high quality
have to repay your loan
seeds. At the end of the
with interest, which amount
season you
s to a payment of 120 units
make 300 units of money
of money. In a normal year
with high quality seeds.
In a bad year you make 60
you
quality seeds. When you
units of money when you
use normal seeds instead
use high
of high quality seeds you
and bad years.
make less money in both
normal
(a) This growing season
turns out to be normal.
Will you be able to repay
your loan at the end of the
season?
5
3
አቅም የአንድን ቤተሰብ የሰብል ዋስትና ፍላጎት እና የሰብል ዋስትና የመግዛት አቅም አመላካች ናቸው። አወያዩ ከኢንዴክስ ዲዛይን
አባላት ጋር ውይይት ከማድረጉ በፊት የቀበሌውን አስተዳዳሪ በማነጋገር ስለመንደሩ መሰረታዊ የሆኑ መረጃዎችን መሰብሰብ ይችላል።
ይህም ስንት አባውራ በቀበሌው አንደሚኖር፧ ቀበሌው የሚታረሰው መሬት ስፋት፧ በመስኖ የለማው መሬት ስፋት፧ ዋና ዋና
CHAPITRE 3
ሰብሎች፧ ቀበሌው የሚኖሩ የሴት እማውራዎች ቁጥር እና በድርቅ ምክንያት ስለሚክሰተው አደጋ የመሳሰሉትን ያጠቃልላል።
የዲዛይን አባላቱ ለውይይቱ በቦታው እንደደረሱ ከዚህ በታች የተዘረዘሩት መረጃዎች ከያንዳንዳቸው መሰብሰብ ይኖርበታል።
CHAPTER
THREE
1. ሥም (በሚስጥር ይያዛል)፡ _______________________________________ e
Qu’est-ce qu
2.APA_______________________________________
ፆታ፡ ITU
ASURANSI IN
DEKS IKLI
basée sur un
l’assurance
rologique ?
indice météo
M?
ፆታዎ ሴት ከሆነ የሴት እማውራ ነዎት? _______________________________________
3.1 Topik: Ap
a itu Asurans
i
Indeks Iklim?
météoro3. እድሜ፡ _______________________________________
e sur un indice
urance basé
t-ce que l’ass
4. በቀበሌው የሚኖሩበት መንደር ሥም፡ _______________________________________
Thème : Qu’es
3.1
3.1.1 Tujuan
Tujuan dari bab
ini adalah untu
k memperkenal
indeks iklim berb
logique ?
kan pembaca deng
eda dari produk
an konsep Asu
asuransi tanaman
iklim mungkin
ransi Indeks Iklim
cocok untuk peng
tradisional, dan
(l’assu, bagaimana asur
untuk menggam
elolaan risiko peta
météorologique
ansi
barkan bagaiman
tif
ni secara keseluru
e sur un indice
les cultures,
a asuransi inde 3.1.1 Objec
han.
l’assurance basé
tionnelle pour
ks
ur le concept de
d’assurance tradi
3.1.2 Pendah
entera au lecte
autres produits
au risque.
uluan: Apa itu
document prés
e se distingue des
rale du fermier
Cette partie du
Asuransi?
t cette assuranc
la gestion géné
rà
), commen
ielle peut s’adapte
Asuransi adalah
rance indicielle
pengaturan keua
t l’assurance indic
ngan
disebabkan oleh
et décrire commen
berbagai hal, term yang dimaksudkan untuk mem
bukanlah hadiah
berikan perlindun
asuk kematian
l’assurance ?
, kecelakaan mob
atau subsidi, tetap
gan dari risiko.
être n’imil, atau bahkan
Risiko ini dapa
menerima perli
i cara di mana
Qu’est-ce que
e. Ce risque peut n’est ni
ction :
t
untuk kerugian
ndungan dalam
seseorang dapa
assurés du risqu
tanaman. Asurans 3.1.2 Introdu
tahu
t membayar seju
surance
lebih dari juml
n de protéger les
i
mlah kecil di tahu
s de récolte. L’as
ah yang diterima n yang buruk. Namun, dari wak
ancier qui a l’intentio
même les perte
tu
untuk membaya
n
ant les bonnes
Kita. Untuk men
arrangement finan les accidents de la route, ou
quantités pend
r keuntungan dari ke waktu jumlah yang dibayark yang baik dan
dapatkan asuransi
t,
surance est un
urs plus pour
paie de petites
an SELALU akan L’as
perusahaan asur
t la mor
Dalam pertukara
, kita harus men
personne
payera toujo
e : ce qui inclu
ansi
n untuk pembaya
yetujui dan men
par lequel une
Néanmoins, on
une profite
andatangani kont yang memegang resiko untuk porte quel risqu subvention, mais un moyen
kompensasi jika
ran, yang dilak
vaises années.
surance gagne
ukan di awal dise
rak dengan peru
ketentuan kont
e pendant les mau
au ni une
compagnie d’as
pensatoir
un cade
e que la
rak
sahaan asuransi
but
yang buruk terja
it un montant com
pensatoires parc
.
di yang tidak terca tertentu (biasanya berhubungan “premium”, perusahaan asur
nées et elle reço
ansi memberik
les montants com
e
tidak terjadi, Kita
dengan kerugian
kup dalam kont
an
n recevra avec
rak, pembeli tidak
surance. Une prim
) terjadi. Nam
tidak akan men
l’assurance qu’o
un, jika sesuatu
compagnie d’as
bahwa ada istila
dapatkan prem
diberi uang. Sela
risque.
une compagnie
i Kita kembali.
contrat avec une
h kesepakatan
in itu, jika dise
e d’assurance,
pour protéger du
er et signer un
awal yang men
Salah satu man
et pour une prim
s, dans les cas
entukan jumlah
faat dari pembelia pakati kerugian
obligé de s’accord
ie d’assurance,
se passent. Mai
kompensasi yang
urance, on est
n asuransi adal
ance à la compagn du contrat (relatif aux pertes)
En plus, s’il
Kita terima.
Pour obtenir l’ass
ah
d’av
mnisé.
3.1.3 Asuran
un paiement fixe
s spécifiées
uré n’est pas inde
fice de
d’assurance est
si Tradisional
si les condition
l’assurance, l’ass
mnisé. Un béné
mnité garantie
dibandingkan
t pas couvert par
uré n’est pas inde n recevra.
fournit une inde
passe qui n’es
le contrat, l’ass
dengan Asuran
qu’o
événement se
Asuransi indeks
spécifiée dans
compensatoire
si Indeks
où un mauvais
adalah alat yang
n’est pas autant
file:///Users/raheldiro/projects/redumat/docs/_build/default/html/Amharic.html
Page 5 of 10
dictent le montant
relatif baru yang
yarkan berdasar
s mais la perte
éterminées qui
y a des perte
dapat digunaka
kan indeks, sepe
itions préd
n petani untuk
rti curah hujan,
qu’il y a des cond
konsekuensi dari
membantu men
diukur pada stasi
l’assurance est
cuaca, seperti
?
gelola risiko. Itu
un cuaca lokal
hasil panen peta
lesaikan sejumlah
ance indicielle
dibaatau
ni. Perbedaan
masalah mendasa
parée à l’assur
yang cerdik mem melalui satelit, bukan berdasar
negara-negara
L’assurance initionnelle com
kan
buat asuransi inde
berkembang. Tida r yang membuat asuransi tradi
gérer le risque.
surance trad
ks mampu men
sional tidak bisa
k seperti asuransi
lapangan petani
r les fermiers à
3.1.3 L’as
yemesurée par une
dijalankan di wila
tanaman tradision
untuk menentu
eau qui peut aide
saison, qui est
kan premi atau
yah pedesaan di
yang telah ditet
al, perusahaan
ivement nouv
débourse sur
e pendant une
menilai kerusaka
asuransi tidak
apkan sebelumn
est un outil relat
pluie qui tomb
traditionnelle qui problèmes
ielle
ce
tité de
perlu mengunj
n, jika jumlah
ya, maka asuransi
kelangsungan
L’assurance indic
paré à l’assuran
ungi
ieurs
comme la quan
curah hujan di
hidup tanaman
akan membaya
sur un indice,
des satellites, com distinction subtile résout plus
bawah ambang
atau gagal, peta
r. Karena pem
langsungan hidu
dicielle débourse ue locale ou télé-détectée par
batas
ni selal
bayaran tersebut
ier. Cette
p tanaman. Inov
ogiq
tidak terkait deng
lte pour un ferm
asi ini secara sign u memiliki insentif untuk mem
mengurangi prem
station météorol
an
o, comme la réco
buat keputusan
ifikan menurun
i asuransi dan
5
de la mété
kan biaya trans
terbaik untuk kemeningkatkan
une conséquence
aksi dan resiko
aksesibilitas.
perusahaan asur
ansi ,
5. በቤትዎ ስንት ሰው ይኖራል? _______________________________________
6. በቤትዎ ከሚኖሩት ሰዎች ስንቱ ከቤት ውጪ ይሰራሉ? _______________________________________
7. ምን ያህል የእርሻ መሬት አለዎት? _______________________________________
8. የትኛዎቹን የሰብል አይነቶች ያመርታሉ? በየትኛው የምርት ወቅት ነው የሚያመርቱት?
_______________________________________
8.1 በዋናነት የሚያመርቱት የትኛውን የሰብል አይነት ነው?
_______________________________________
8.2 ይህ የሰብል አይነት ባካባቢው በዋንኛነት ለምግብ የሚውል ሰብል ነው?
7

9. That
farmers
choose

10. Projects
we
look
at
today
• Na#onal
Agricultural
Insurance
Scheme
(NAIS)
and
Weather
Based
Crop
Insurance
Scheme
(WBCIS)
–
India
• Mongolia
Index
Based
Livestock
Insurance
(MIBLI)
–
Mongolia
• Kilimo
Salama
–
Kenya
and
Rwanda
(IRI
is
partner)
• Index
Based
Livestock
Insurance
(IBLI)
–
Kenya
and
Ethiopia:
a
satellite
driven
program
with
asset
insurance
• R4
Rural
Resilience
Ini#a#ve
–
Ethiopia
and
Senegal:
a
farmer
led,
unsubsidized
integrated
risk
management
project,
with
labor
for
insurance
and
satellite
rainfall
features
(IRI
is
partner)
My
apologies
if
I
get
project
facts
wrong
(or
show
bias)

11. India
Aield
crops
CCAFS
(websearch)

12. India
Aield
crops
Na#onal
Agricultural
Insurance
Scheme
(NAIS)
and
Weather
Based
Crop
Insurance
Scheme
(WBCIS)
–
India
Others
in
the
room
know
much
more
than
I
about
this
project
• HUGE:
9
million
weather,
22
million
area
yield
• IniDal
BASIX
w-­‐index
~2004ish,
first
index
ahempt
• Unsubsidized,
unbundled-­‐-­‐grew
to
10,000,
• “disappoinDng”
-­‐-­‐low
take
up,
min
purchase
opDon,
low
re-­‐enrollment
(?)
• Strategies
for
scale:
compulsory,
subsidized
• Required
to
get
subsidized
government
loan,
Subsidized
premium
• Is
this
the
scale
model
to
follow
(or
scale
for
the
sake
of
scale)?
• Subsidized,
mandatory
standard
for
most
“unsuccessful”
projects
• How
are
we
we
confident
farmers
want
index,
targets
needs,
models
not
wrong?
• Rely
on
economic
study
evidence
(iniDal
evidence
of
shiVing
to
improved
inputs)
• Need
addiDonal
innovaDons,
broader
mix
of
demonstraDons

13. Mongolia
Livestock
Mark
Rosenwald,
CSP2

14. Mongolia
Livestock
Mongolia
Index
Based
Livestock
Insurance
(MIBLI)
Others
know
much
more
than
I
about
this
project
• Area
yield
livestock—use
aggregate
livestock
data
for
payouts
• Directly
insures
producDve
assets
(not
only
outputs)
• Government,
WB
reinsurance
for
huge
loss
(subsidy
in
tail?)
• Linked
to
risk
mgmt,
preparedness,
early
warning
systems
• Long
project,
constantly
growing
(cumulaDve
totals)
• 2006:
2,400,
2008:
4,000,
2009:
14,000,
2013:
10%
of
herders
• Requires
good
surveys
of
livestock
everywhere
every
year
What
if
surveys
not
available/too
expensive?

15. Livestock,
Kenya
and
Ethiopia
livestockinsurance.files.wordpress.com

16. Livestock,
Kenya
and
Ethiopia
Index
Based
Livestock
Insurance
(IBLI)
Others
in
room
know
much
more
than
I
about
this
project
• Research
MoDvated,
research
built
• Targets
poverty
trap
directly:
insurance
for
producDve
assets
• Designed
using
research
project
data,
analyses
•
•
•
•
Satellite
index
instead
of
area
yield
from
survey
staDsDcs
Subsidized
risk
premium
Since
2010
~4,400
total
households
purchased
Extremely
hard
to
reach
clients
• Impacts:
insured
weather
drought
significantly
beher

17. Kilimo
Salama,
East
Africa
audiencescapes.org

18. Kilimo
Salama,
East
Africa
Syngenta
Founda#on.
Kenya,
Rwanda
+
others
IRI
perspecDve
(we
are
a
project
partner)
• Weather
index
for
rain-­‐fed
crops,
started
~2009
• Biggest,
fastest
growing,
unsubsidized
project
I
know
of
• 2009:
200,
2012:
100,000
(in
2012
alone)
• MulDple
packages,
efficient
distribuDon
channels
• Unbundled,
loan
bundled,
seed
bundled,
seed
company
members
• Some
phone
sales/payments,
some
satellite,
some
raingauge
• IniDal
evidence
of
farmer
increasing
profit
via
insurance
• Not
subsidy—build
on
relaDonships,
packages
to
improve
produc#on

19. R4/HARITA
Ethiopia/Senegal
IRI
perspecDve
(we
are
a
project
partner)
• R4
builds
on
HARITA,
in
Ethiopia
Integrated
risk
management
framework
developed
by
Oxfam
America,
the
Relief
Society
of
Tigray
(REST),
together
with
Ethiopian
farmers
and
several
other
naDonal
and
global
partners,
scaling
to
Senegal
• R4:
risk
reducDon,
risk
transfer
(insurance),
prudent
risk
taking
(microcredit),
and
risk
reserves
(savings)
• Ethiopia
sales
and
scaling
• 2009:
200
farms,~20,000
Individual
farms
individually
chose
to
buy
in
2013
alone
• Unsubsidized
premium,
nonloan
bundled,
nonmanditory
• Work
for
insurance
or
insurance
for
cash
• High
demand
(take-­‐up
exceeds
project
capacity)
• Min
purchase
possible:
~$3
Ave
package
chosen:
~$19,
Average
cash
only:
~$9
• Farmers
overwhelmingly
chose
to
pay
more
money
for
more
frequent
payouts
• Satellite
rainfall
esDmate
triggers
payouts
• Extremely
parDcipatory
farmer
design,
validaDon,
sales
process-­‐each
village
leads
their
design
through
formal
quanDtaDve
parDcipatory
process
• Preliminary
analysis
suggests
meaningful
improvements
in
producDve
assets
from
insurance

20. Quantitative
farmer
design

21. Games
to
Aind
production
opportunities
(Senegal)

22. Lessons
from
examples
• Design
insurance
for
a
purpose
• Target
Development/AdaptaDon
challenge,
Build
insurance
to
unlock
producDon
opportuniDes
• Target
appropriate
groups/levels,
leveraging
other
risk
mgmt
• Make
insurance
final
piece
of
careful
package
• People
who
benefit
from
insurance
should
• Guide
design,
understand
its
strengths
and
weaknesses
quanDtaDvely
• Can
have/build
package
appropriate
for
their
opportuniDes/risks
• Build
• On
strong
relaDonships,
solid
science,
strong
distribuDon
methods,
validaDon
and
improvement,
transparent,
understandable
products
• Start
slowly
and
carefully
to
scale
quickly
on
solid
foundaDon
• Basis
risk
is
central,
but
unless
carefully
thought
out
can
lead
along
wrong
path:
• Farmer,
science
based
approaches
to
basis
risk
minimizaDon
• Reduce
right
risk:
what
cant
be
targeted
through
other
approaches
that
blocks
opportuniDes
• We
want
farmers
to
be
able
to
save
crops
in
drought
using
an
index
payout

24. Thank
you