Overcoming challenges to deliver agricultural weather-index insurance

Area:
Climate
Authors:
, , , and
Published:

This brief identifies and addresses key issues facing weather-index-based agricultural insurance. Drawing on diverse experiences from Africa and Central America, it zooms in on key challenges such as affordability, quality of weather data and models, raising awareness and trust in the benefits of insurance products and policy and regulatory frameworks. Scaling strategies require reliable products, access to the rural areas, increased awareness about insurance and cost-effective delivery channels.

The recent CTA workshop on ‘implementing climate-smart solutions for next-generation ACP agriculture’ identified four fundamental challenges to address: increase uptake and adoption of interventions and solutions, make more convincing cases for climate-smart interventions to farmers, promote appropriate policy frameworks and processes, and improve information, communication and feedback flows that enhance awareness and better connect actors and interventions. Interventions that work were targeted at five climate-smart priorities: expanding the evidence base, developing supportive policy frameworks, building stronger institutions, devising alternative financing options and prioritising farm-centric implementation. 

This brief by Getaneh Erena, Viktoria Popova, Eleni Vakaki, Joost van der Woerd and Yihenew Zewdie identifies and addresses key issues facing weather-index based agricultural insurance. Drawing on diverse experiences from Africa and Central America, it zooms in on key challenges such as affordability, quality of weather data and models, raising awareness and trust in the benefits of insurance products and policy and regulatory frameworks. To have real impact, scale is the first requirement. Scaling strategies require reliable products, access to the rural areas, increased awareness about insurance and cost-effective delivery channels