Bundling Drought Tolerance & Index Insurance to Reduce Rural Household Vulnerability to Drought

Size: px
Start display at page:

Download "Bundling Drought Tolerance & Index Insurance to Reduce Rural Household Vulnerability to Drought"

Transcription

1 Bundling Drought Tolerance & Index Insurance to Reduce Rural Household Vulnerability to Drought Travis J. Lybbert & Michael Carter University of California, Davis Risk, Resources, Governance, and Development: Founda8ons of Public Policy University of Hawaii, Manoa December 2012

2 Drought Map

3 Drought Vulnerability Map

4 ImplicaFons for SociopoliFcal Stability? Dry and hot gejng drier and hoker (precipitafon change ; Hoerling et al. 2011)

5 Bundling Drought Tolerance with Drought Index Insurance Drought tolerance and index insurance are widely touted as promising tools for reducing drought vulnerability In isolafon, they each have disfnct limitafons Considered together they share a convenient complementarity Bundling the two may potently leverage this complementarity

6 The Drought Burden A pure subsistence burden is the excepfon rather than the rule Much of the drought burden is mediated by markets Drought responses can amplify the drought burden due to covariate nature of drought shocks Drought events can harm the poor directly Ex post burden The threat of drought is like a bully Ex ante burden

7 Ex Ante v Ex Post Effects (Elbers et al. 2007)

8 Classic Drought IntervenFons Type Acute Relief Agronomic Financial Infrastructural & Informa:onal Examples Food aid and humanitarian aid Refugee security and support Cash transfers and vouchers Breeding staple crops for beker drought resistance and early maturity Resource conservafon and other agronomic pracfces Supplemental irrigafon Extension to promote adopfon of improved inputs and pracfces Income diversificafon and livelihood support programs Microcredit and savings Insurance Dams, canals and drains Improved roads to reduce transport and transacfons costs Improved weather informafon and climate models BeKer daily, weekly and seasonal weather forecasts

9 Drought Tolerance Longstanding breeding objecfve with new tools, renewed promise and high hopes Massive private & public sector investments Public- private partnerships (e.g., Drought Tolerant Maize for Africa, etc.)

10 ImplicaFons of Non- Monotonicity (Lybbert and Bell 2010)

11 ImplicaFons of Non- Monotonicity (Lybbert and Bell 2010)

12 Index Insurance Championed recently as a promising alternafve to convenfonal crop insurance Contract Fed to index that is correlated with individual outcomes to dodge moral hazard and adverse selecfon problems Basis risk and transparency tradeoffs A growing set of experiences and rigorous evidence suggests that it may reduce both ex post and ex ante drought burden

13 Index Insurance ExperimentaFon Rainfall China, India, Malawi, Nicaragua, Ethiopia Satellite Mexico, Kenya, Ethiopia Satellite + Rainfall Ethiopia, Kenya, Mali Area- yield Peru, Ecuador ENSO Peru

14 Drought Index Insurance Are beneficiaries willing to pay actuarially fair prices? How sustainable will these markets be? In contrast to DT, the marginal cost of providing DII are high and financial viability makers Price elasfcity of demand for DII is crifcal

15 Bundled DT- DII: Complementarity Bundled DT- DII Drought Index Insurance Rainfall pdf Drought Tolerance Rainfall

16 CalibraFng a DT- DII Product: Ecuador Rainfed, drought- prone maize producfon DT maize confers relafve yield advantage of 20% at opfmal drought, which fades with less/more severe drought pressure Area- yield index insurance product calibrated and priced according to historic maize yield How would a DT- DII bundle compare to DT and DII in isola8on?

17 Yield- Earnings Profiles

18 What s a bundled DT- DII product worth? Addi:onal Cost Certainty Equivalent (lbs maize) Certainty Equivalent (USD) % Change Conven:onal Maize DT Maize $20/ac % DII- high strike $65/ac % DII- low strike $20/ac % DT- DII $20/ac (DT) % $13/ac (DII)

19 Discussion & Future DirecFons SpaFal variafon in non- monotonic DT benefits? Nuances in drought and exisfng flexibility can be very important Assessing DT impacts ex post (e.g., spafal cropping choices, hidden drought burden)? Release of new DT maize variefes is imminent in parts of Africa How context- specific are DT- DII complementarifes? Role of basis risk in magnitude of these complementarffes? How valuable might a DT- DII bundle be from the perspecfve of the rural poor? How logisfcally and administrafvely feasible might such a bundle be?

Index Insurance for Small-holder Agriculture:

Index Insurance for Small-holder Agriculture: Index Insurance for Small-holder Agriculture: What We Have Learned about Impacts & Contract Design Michael R Carter Department of Agricultural & Resource Economics BASIS Assets & Market Access Research

More information

Index Insurance in India

Index Insurance in India Index Insurance in India Kolli N Rao, PhD Aon Benfield, India Indian Agriculture & Risks What s Index Insurance? Why Index Insurance? The Outline Architecture of Indian Crop Insurance Coverage: The Numbers

More information

Assets & Market Access (AMA) Innovation Lab. Tara Steinmetz, Assistant Director Feed the Future Innovation Labs Partners Meeting April 21, 2015

Assets & Market Access (AMA) Innovation Lab. Tara Steinmetz, Assistant Director Feed the Future Innovation Labs Partners Meeting April 21, 2015 Assets & Market Access (AMA) Innovation Lab Tara Steinmetz, Assistant Director Feed the Future Innovation Labs Partners Meeting April 21, 2015 Countries with Current AMA Innovation Lab Projects AMERICAS

More information

DESIGNING WEATHER INSURANCE CONTRACTS FOR FARMERS

DESIGNING WEATHER INSURANCE CONTRACTS FOR FARMERS DESIGNING WEATHER INSURANCE CONTRACTS FOR FARMERS In Malawi, Tanzania and Kenya Excerpts from final report to the Commodity Risk Management Group, ARD, World Bank June 2007 Download the full report here:

More information

Improving farmers access to agricultural insurance in India

Improving farmers access to agricultural insurance in India International Microinsurance Conference Learning Sessions Daniel Clarke Improving farmers access to agricultural insurance in India 30 June 2011 2010 The Actuarial Profession www.actuaries.org.uk Background:

More information

Index Insurance and Climate Risk Management In Malawi:

Index Insurance and Climate Risk Management In Malawi: Index Insurance and Climate Risk Management In Malawi: Theory and Practice (mostly practice) Presented by Daniel Osgood (IRI) at the 2007 CPASW, Seattle deo@iri.columbia.edu Material contributed by: Miguel

More information

Speaker Summary Note

Speaker Summary Note 2020 CONFERENCE MAY 2014 Session: Speaker: Speaker Summary Note Building Resilience by Innovating and Investing in Agricultural Systems Mark Rosegrant Director, Environment and Production Technology Division

More information

Effects of Index Insurance on Economic Decision Making and Credit Seeking in Tigray, Ethiopia. Betsy Ness-Edelstein Master of Arts, 2012

Effects of Index Insurance on Economic Decision Making and Credit Seeking in Tigray, Ethiopia. Betsy Ness-Edelstein Master of Arts, 2012 Effects of Index Insurance on Economic Decision Making and Credit Seeking in Tigray, Ethiopia Betsy Ness-Edelstein Master of Arts, 2012 1 Introduction This report examines the effects of a weather index-based

More information

Index Insurance for Climate Impacts Millennium Villages Project A contract proposal

Index Insurance for Climate Impacts Millennium Villages Project A contract proposal Index Insurance for Climate Impacts Millennium Villages Project A contract proposal As part of a comprehensive package of interventions intended to help break the poverty trap in rural Africa, the Millennium

More information

+ Towards an Agricultural Risk Management Framework

+ Towards an Agricultural Risk Management Framework + Towards an Agricultural Risk Management Framework Risk Management in African Agriculture: Taking Stock of What Has and Hasn t Worked Lilongwe, Malawi September 6 10, 2010 Carlos Enrique Arce Agriculture

More information

Weather Index Crop Insurance. White Paper. Implementation, Product Design, Challenges And Successes Lessons Learned In The Field

Weather Index Crop Insurance. White Paper. Implementation, Product Design, Challenges And Successes Lessons Learned In The Field White Paper Weather Index Crop Insurance Implementation, Product Design, Challenges And Successes Lessons Learned In The Field By Shadreck Mapfumo, Vice President, Agriculture, MicroEnsure November 2008

More information

(Germanwatch) 9 th IIASA-DPRI Forum on Integrated Disaster Risk Management

(Germanwatch) 9 th IIASA-DPRI Forum on Integrated Disaster Risk Management Insurance as part of a Climate Adaptation Strategy Joanne Linnerooth-Bayer (IIASA), Reinhard Mechler (IIASA), Christoph h Bals (Germanwatch) 9 th IIASA-DPRI Forum on Integrated Disaster Risk Management

More information

Deficit Rainfall Insurance Payouts in Most Vulnerable Agro Climatic Zones of Tamil Nadu, India

Deficit Rainfall Insurance Payouts in Most Vulnerable Agro Climatic Zones of Tamil Nadu, India Deficit Rainfall Insurance Payouts in Most Vulnerable Agro Climatic Zones of Tamil Nadu, India S.Senthilnathan, K.Palanisami, C.R.Ranganathan and Chieko Umetsu 2 Tamil Nadu Agricultural University, Coimbatore,

More information

Weather Index Insurance for Agriculture and Rural Areas in Lower Income Countries

Weather Index Insurance for Agriculture and Rural Areas in Lower Income Countries Weather Index Insurance for Agriculture and Rural Areas in Lower Income Countries Barry J. Barnett and Olivier Mahul* * Barry Barnett is associate professor in the Department of Agricultural Economics

More information

THE COMMODITY RISK MANAGEMENT GROUP WORLD BANK

THE COMMODITY RISK MANAGEMENT GROUP WORLD BANK THE COMMODITY RISK MANAGEMENT GROUP WORLD BANK Agricultural Insurance: Scope and Limitations for Rural Risk Management 5 March 2009 Agenda The global market Products Organisation of agricultural insurance

More information

JAMAICA. Agricultural Insurance: Scope and Limitations for Weather Risk Management. Diego Arias Economist. 18 June 2009

JAMAICA. Agricultural Insurance: Scope and Limitations for Weather Risk Management. Diego Arias Economist. 18 June 2009 JAMAICA Agricultural Insurance: Scope and Limitations for Weather Risk Management Diego Arias Economist 18 June 2009 Financed partly by the AAACP EU Support to the Caribbean Agenda The global market Products

More information

WEATHER INSURANCE DERIVATIVES TO PROTECT RURAL LIVELIHOODS

WEATHER INSURANCE DERIVATIVES TO PROTECT RURAL LIVELIHOODS WEATHER INSURANCE DERIVATIVES TO PROTECT RURAL LIVELIHOODS International Workshop on Agrometeorological Risk Management New Delhi, India 26 October 2006 Ulrich Hess Chief of Business Risk Planning, WFP

More information

Islamic Relief Worldwide

Islamic Relief Worldwide Islamic Relief Worldwide Dedicated to alleviating the suffering of the world s poorest people Islamic Relief Worldwide Disaster Risk Reduction Challenges: Sahel UNGA, 12 April 2012 NYC West Africa Food

More information

Humanitarian programming, risk management including insurance, & livelihood resilience

Humanitarian programming, risk management including insurance, & livelihood resilience Humanitarian programming, risk management including insurance, & livelihood resilience Session 2: Humanitarian programming for risk reduction and resilience Dakar, Senegal 2-3 October 2013 Central idea:

More information

Big Questions in Insurance

Big Questions in Insurance Big Questions in Insurance For the world s poor, living with unpredictable and inadequate income flows makes it difficult to cope with risk. Catastrophic events such as illness or crop failure can be devastating

More information

El Niño Insurance & Low-Emission Climate-Resilient Development in Peru

El Niño Insurance & Low-Emission Climate-Resilient Development in Peru El Niño Insurance & Low-Emission Climate-Resilient Development in Peru Benjamin Collier, GlobalAgRisk, Inc., Agricultural Economics at University of Kentucky Nuevo Vallarta, Mexico 15 March 2011 Outline

More information

Globalization and Global Food Crises: The Role of Official Statistics in African Context

Globalization and Global Food Crises: The Role of Official Statistics in African Context Globalization and Global Food Crises: The Role of Official Statistics in African Context Abstract The globalization of world economy is increasing the need for basic statistics on supply and demand for

More information

Fact sheet: Kilimo Salama ( Safe Agriculture )

Fact sheet: Kilimo Salama ( Safe Agriculture ) Fact sheet: Kilimo Salama ( Safe Agriculture ) Micro insurance for farmers in Kenya 1. Why do farmers need insurance? Weather risks define the lives of smallholder farmers. Good years are remembered for

More information

Drought related food insecurity: A focus on the Horn of Africa

Drought related food insecurity: A focus on the Horn of Africa Drought related food insecurity: A focus on the Horn of Africa Drought has caused famine in parts of Somalia and killed tens of thousands of people in recent months. The situation could get even worse

More information

Catchment and Lake Research

Catchment and Lake Research LARS 2007 Catchment and Lake Research Flood Forecasting and Early Warning System (FFEWS) an Alternative Technology for Flood Management System and Damage Reduction in Ethiopia: A Concept Note Semu Ayalew

More information

DESIGNING WEATHER INSURANCE CONTRACTS FOR FARMERS

DESIGNING WEATHER INSURANCE CONTRACTS FOR FARMERS DESIGNING WEATHER INSURANCE CONTRACTS FOR FARMERS In Malawi, Tanzania and Kenya Final report to the Commodity Risk Management Group, ARD, World Bank June 27 Prepared by: Daniel Osgood, Megan McLaurin,

More information

Seventh African Development Forum. Climate Risk Management: Monitoring, Assessment, Early Warning and Response

Seventh African Development Forum. Climate Risk Management: Monitoring, Assessment, Early Warning and Response Seventh African Development Forum Acting on Climate Change for Sustainable Development in Africa Climate Risk Management: Monitoring, Assessment, Early Warning and Response Issues Paper #4 ADF VII 10-15

More information

Role of Government in Agriculture Risk Mitigation & Expansion of Insurance in India

Role of Government in Agriculture Risk Mitigation & Expansion of Insurance in India Role of Government in Agriculture Risk Mitigation & Expansion of Insurance in India Kolli N Rao 4 th October 2015 0 OVERVIEW India: The Agriculture Setting India: Agriculture Insurance Architecture Agriculture

More information

SUSTAINABLE LIVELIHOODS AND FOOD SECURITY UNDER CHANGING CLIMATE IN DRY AREAS

SUSTAINABLE LIVELIHOODS AND FOOD SECURITY UNDER CHANGING CLIMATE IN DRY AREAS Expert Group Meeting on Promoting Best Practices On sustainable Rural Livelihoods in the ESCWA Region Beirut, 24-25 November 2010 SUSTAINABLE LIVELIHOODS AND FOOD SECURITY UNDER CHANGING CLIMATE IN DRY

More information

Traditional Products. The two Traditional Crop Insurance Products are: Named Peril Crop Insurance (NPCI) Multi Peril Crop Insurance (MPCI)

Traditional Products. The two Traditional Crop Insurance Products are: Named Peril Crop Insurance (NPCI) Multi Peril Crop Insurance (MPCI) Traditional Products Traditional crop insurance relies on the principle of indemnity, where losses are measured in the field either after the event (named peril crop insurance) or through yield measurement

More information

Tailoring Agricultural Insurance Products to Developing Countries

Tailoring Agricultural Insurance Products to Developing Countries Tailoring Agricultural Insurance Products to Developing Countries Ramiro Iturrioz Senior Agriculture Insurance Specialist Insurance for the Poor The World Bank October, 2010 1 Agenda Risk and constraints

More information

Multi-Site Bundling of Drought Tolerant Maize Varieties. and Index Insurance. Multi-Site Bundling of Drought Tolerant Maize Varieties

Multi-Site Bundling of Drought Tolerant Maize Varieties. and Index Insurance. Multi-Site Bundling of Drought Tolerant Maize Varieties Multi-Site Bundling of Drought Tolerant Maize Varieties and Index Insurance Multi-Site Bundling of Drought Tolerant Maize Varieties and Index Insurance Sebastain N. Awondo (Corresponding author) Postdoctoral

More information

Using satellites to make index Index Insurance and insurance scalable* Perspective

Using satellites to make index Index Insurance and insurance scalable* Perspective Using satellites to make index Index Insurance and insurance scalable* Daniel Satellites: Osgood, Lead the Scientist IRI Perspective Financial Instruments Sector Team deo@iri.columbia.edu Daniel Osgood,

More information

ZAMBIA EMERGENCY HUMANITARIAN FOOD ASSISTANCE TO FLOOD VICTIMS

ZAMBIA EMERGENCY HUMANITARIAN FOOD ASSISTANCE TO FLOOD VICTIMS AFRICAN DE DEVELOPMENT BANK Prepared by: OSAN Original: English ZAMBIA EMERGENCY HUMANITARIAN FOOD ASSISTANCE TO FLOOD VICTIMS DEPARTMENT OF AGRICULTURE AND AGRO-INDUSTRY, OSAN April 2008 The Government

More information

Can Agricultural Index Insurance Boost Investment and Productivity of Small-scale Farms?

Can Agricultural Index Insurance Boost Investment and Productivity of Small-scale Farms? Can Agricultural Index Insurance Boost Investment and Productivity of Small-scale Farms? New Evidence from Randomized Controlled Trials Michael R Carter Department of Agricultural & Resource Economics

More information

Importance of Data to give access to agriculture insurance to smallscale farmers, 2 nd African Continental Briefing Nairobi, 14 July, 2014

Importance of Data to give access to agriculture insurance to smallscale farmers, 2 nd African Continental Briefing Nairobi, 14 July, 2014 Importance of Data to give access to agriculture insurance to smallscale farmers, 2 nd African Continental Briefing Nairobi, 14 July, 2014 Agrotosh Mookerjee FIA, Principal Actuary, MicroEnsure AGENDA

More information

NREGA for Water Management

NREGA for Water Management National Rural Employment Guarantee Act NREGA for Water Management 30 th October, 2009 Dr. Rita Sharma Secretary to Government of India Ministry of Rural Development NREGA objective supplement wage-employment

More information

Innovations for Managing Basis Risk under Index Insurance for Small Farm Agriculture

Innovations for Managing Basis Risk under Index Insurance for Small Farm Agriculture fondation pour les études et recherches sur le développement international Innovations for Managing Basis Risk under Index Insurance for Small Farm Agriculture Michael R. Carter Michael R. Carter is researcher

More information

Weather Indexed Crop Insurance Jared Brown, Justin Falzone, Patrick Persons and Heekyung Youn* University of St. Thomas

Weather Indexed Crop Insurance Jared Brown, Justin Falzone, Patrick Persons and Heekyung Youn* University of St. Thomas Weather Indexed Crop Insurance Jared Brown, Justin Falzone, Patrick Persons and Heekyung Youn* University of St. Thomas Corresponding author: hkyoun@stthomas.edu 1. Introduction There has been a growing

More information

Agricultural Data and Insurance

Agricultural Data and Insurance Agricultural Data and Insurance Innovations in agricultural data development for insurance Background Insurance requires high quality data. From an insurance perspective data is high quality if it is timely

More information

The 2015-2016 El Niño event: expected impact on food security and main response scenarios in East and Southern Africa

The 2015-2016 El Niño event: expected impact on food security and main response scenarios in East and Southern Africa The 2015-2016 El Niño event: expected impact on food security and main response scenarios in East and Southern Africa Update 27 th October 2015 Felix Rembold, Olivier Leo, Thierry Nègre, Neil Hubbard 2015

More information

CHAPTER 2 AGRICULTURAL INSURANCE: A BACKGROUND 9

CHAPTER 2 AGRICULTURAL INSURANCE: A BACKGROUND 9 CHAPTER 2 AGRICULTURAL INSURANCE: A BACKGROUND 9 Chapter 2: AGRICULTURAL INSURANCE: A BACKGROUND In Chapter 1 we saw that insurance is one of the tools that farmers and other stakeholders can use to manage

More information

Utility, Risk, and Demand for Incomplete Insurance: Lab Experiments with Guatemalan Coffee producers

Utility, Risk, and Demand for Incomplete Insurance: Lab Experiments with Guatemalan Coffee producers Utility, Risk, and Demand for Incomplete Insurance: Lab Experiments with Guatemalan Coffee producers Elisabeth Sadoulet (with Craig McIntosh and Felix Povel) FERDI June 4-5, 2015 1 OBJECTIVE Very large

More information

How To Get Insurance In Nigerian Farming

How To Get Insurance In Nigerian Farming Insurance 14.73 Lecture 16 Abhijit Banerjee and Esther Duflo 1 Quick recap Last time we saw that risk was very costly for the poor And the strategies they employ to avoid risk are very costly This begs

More information

EXPERIENCES WITH CROP INSURANCE IN INDIA

EXPERIENCES WITH CROP INSURANCE IN INDIA EXPERIENCES WITH CROP INSURANCE IN INDIA Risks and Agricultural Insurance Evolution Insurance in India Performance of Yield and Weather Index Based Insurance Gap Between Supply and Demand for Insurance

More information

Political Champions Partnership for stimulating insurance penetration in lower income countries. Initial Market Surveys: Summary Note

Political Champions Partnership for stimulating insurance penetration in lower income countries. Initial Market Surveys: Summary Note Political Champions Partnership for stimulating insurance penetration in lower income countries Initial Market Surveys: Summary Note Executive Summary After the last Champions meeting in April, an expert-level

More information

Common Format for Project/Program Concept Note for the Use of Resources from the PPCR Competitive Set-Aside (Round II)

Common Format for Project/Program Concept Note for the Use of Resources from the PPCR Competitive Set-Aside (Round II) Common Format for Project/Program Concept Note for the Use of Resources from the PPCR Competitive Set-Aside (Round II) 1. Country/Region: BOLIVIA 2. CIF Project ID#: 3. Project/Program Title: 4. Date of

More information

Public private partnerships in agricultural insurance

Public private partnerships in agricultural insurance Public private partnerships in agricultural insurance William Dick Consultant Agricultural Insurance Development Program (AIDP) The World Bank January 30, 2014 Agriculture Insurance Development Program

More information

United Nations Economic and Social Commission for Asia and the Pacific

United Nations Economic and Social Commission for Asia and the Pacific Information Note ICT and Disaster Risk Reduction Division United Nations Economic and Social Commission for Asia and the Pacific Weather Insurance for Adaptation to Climate Risk: Emerging Trends from Asia

More information

Drought Insurance - A Pilot Project in Malawi

Drought Insurance - A Pilot Project in Malawi Drought Insurance - A Pilot Project in Malawi Malawi women draped in traditional Chitenges in song and dance performance with messages on challenges climate change poses on Malawi s development progress

More information

How To Use An Emergency Weather Station

How To Use An Emergency Weather Station Worldwide Monitoring, Analysis and Warning Systems Seminar Master EEWRSA - Mário Gulich Institute Today show Today show Basic concepts What do countries do about warning systems? Analysis of Early Warning

More information

Index-Based Weather Insurance

Index-Based Weather Insurance Policy brief 6015 December 2012 Ahmed Mushfiq Mobarak, Lisa Claire Nestor and Surabhi Agrawal Index-Based Weather Insurance Exploring Demand and Take-Up In brief Unpredictable weather patterns have a great

More information

Mitigation of Investment Risk

Mitigation of Investment Risk 1of 37 F A O P o l i c y L e a r n i n g P r o g r a m m e Module 3: Investment and Resource Mobilization Mitigation of Investment Risk 2of 38 Mitigation of Investment Risk By Calvin Miller, Senior Officer,

More information

Approach: Household and Livelihoods Security (HLS) - CARE

Approach: Household and Livelihoods Security (HLS) - CARE Approach: Household and Livelihoods Security (HLS) - CARE To provide a multi-dimensional view of and peoples goals to identify programming priorities. All Mostly development and stable situations. Primary

More information

Ecosystem-based Adaptation

Ecosystem-based Adaptation Jessica Scranton Ecosystem-based Adaptation for Smallholder Subsistence and Coffee Farming Communities in Central America (CASCADE) What is the CASCADE project? In Central America, smallholder farmers

More information

Formal Insurance, Informal Risk Sharing, and Risk-Taking. A. Mushfiq Mobarak Mark Rosenzweig Yale University

Formal Insurance, Informal Risk Sharing, and Risk-Taking. A. Mushfiq Mobarak Mark Rosenzweig Yale University Formal Insurance, Informal Risk Sharing, and Risk-Taking A. Mushfiq Mobarak Mark Rosenzweig Yale University Background Formal insurance markets largely absent where they are needed 75% of the world s poor

More information

Good Morning. Grain Inventory Management

Good Morning. Grain Inventory Management Good Morning Grain Inventory Management GRAIN INVENTORY MANAGEMENT AND PRICE STABILIZATION POLICY Sources of variation/instability in prices Seasonal (1 year or less) price variations Annual (year-to-year)

More information

Portfolio Risk Management. Module 8

Portfolio Risk Management. Module 8 Portfolio Risk Management Module 8 Rural Finance Module 8 Agenda Block 1 Introduction Risk analysis of agriculture and rural loan portfolio: the art of risk analysis Type of risks Portfolio risk management

More information

IFC and Agri-Finance. Creating Opportunity Where It s Needed Most

IFC and Agri-Finance. Creating Opportunity Where It s Needed Most IFC and Creating Opportunity Where It s Needed Most Agriculture remains an important activity in emerging markets IMPORTANCE OF AGRICULTURE as major source of livelihood 75% of poor people in developing

More information

"Drinking Water Security for Poor and Women in Five Climate

Drinking Water Security for Poor and Women in Five Climate "Drinking Water Security for Poor and Women in Five Climate Vulnerable A Community Based Adaptation Initiative UNFCCC Technical Workshop on Water and Climate Change impacts and adaptation strategies under

More information

Agricultural Insurance for Developing Countries The Role of Governments

Agricultural Insurance for Developing Countries The Role of Governments Agricultural Outlook Forum Washington D.C. February 22, 2013 Agricultural Insurance for Developing Countries The Role of Governments Speaker José Ángel Villalobos Actuarial Consultant Disaster Risk Financing

More information

Discussion about the practicability of implementing flood risk. management and urban flood insurance in China. Longhua Gao, Xiaoqing Zhou

Discussion about the practicability of implementing flood risk. management and urban flood insurance in China. Longhua Gao, Xiaoqing Zhou Discussion about the practicability of implementing flood risk management and urban flood insurance in China Longhua Gao, Xiaoqing Zhou Abstract: This paper explains the flood risk management at first,

More information

Improving food security

Improving food security From feeding a population expected to reach nine billion by 2050 to looking after soil, water and natural habitats our world s farmers face increasing challenges. What s more, they re under greater pressure

More information

Drought Micro-insurance in Ethiopia: An Innovative Model to Increase the Resilience of the Poorest Households

Drought Micro-insurance in Ethiopia: An Innovative Model to Increase the Resilience of the Poorest Households Drought Micro-insurance in Ethiopia: An Innovative Model to Increase the Resilience of the Poorest Households Index Insurance Innovation Initiative January, 2010 Rome, Italy Dir biyabir anbessa yassir.

More information

Drought Monitoring and Forecasting in Sub-Saharan African. Justin Sheffield Princeton University

Drought Monitoring and Forecasting in Sub-Saharan African. Justin Sheffield Princeton University Drought Monitoring and Forecasting in Sub-Saharan African Justin Sheffield Princeton University Outline Challenges for sub-saharan Africa (SSA) Current capabilities (national, regional, international) Princeton

More information

UNDP s Monitoring Framework for Climate Change Adaptation

UNDP s Monitoring Framework for Climate Change Adaptation UNDP s Monitoring Framework for Climate Change Adaptation Socioeconomic information in adaptation The link for UNDP: Adaptation Design, Tracking, and Evaluation Adaptation is about development effectiveness

More information

CHAPTER 3 INTRODUCTION TO WEATHER INDEX INSURANCE 15

CHAPTER 3 INTRODUCTION TO WEATHER INDEX INSURANCE 15 CHAPTER 3 INTRODUCTION TO WEATHER INDEX INSURANCE 15 Chapter 3: INTRODUCTION TO WEATHER INDEX INSURANCE 3.1 OVERVIEW Having undertaken a risk assessment, identified a particular risk (weather), chosen

More information

Savings and Subsidies, Separately and Together: Decomposing Effects of a Bundled Anti- Poverty Program

Savings and Subsidies, Separately and Together: Decomposing Effects of a Bundled Anti- Poverty Program Savings and Subsidies, Separately and Together: Decomposing Effects of a Bundled Anti- Poverty Program Michael Carter, UC Davis Rachid Laajaj, Universidad de los Andes Dean Yang, University of Michigan

More information

Weather, Climate and Water Services for the Least Developed Countries

Weather, Climate and Water Services for the Least Developed Countries Weather, Climate and Water Services for the Least Developed Countries The WMO Programme for the Least Developed Countries (LDCs) was established in 2003 in response to the call of the Third United Nations

More information

Agricultural insurance in Sub-Saharan Africa: can it work?

Agricultural insurance in Sub-Saharan Africa: can it work? AFRICA AGRICULTURAL MARKETS PROGRAM (AAMP) Agricultural insurance in Sub-Saharan Africa: can it work? Ruth Vargas Hill* Paper prepared for the Fourth African Agricultural Markets Program (AAMP) policy

More information

Weather Index Insurance and Climate Change: Opportunities and Challenges in Lower Income Countries

Weather Index Insurance and Climate Change: Opportunities and Challenges in Lower Income Countries The Geneva Papers, 2009, 34, (401 424) r 2009 The International Association for the Study of Insurance Economics 1018-5895/09 www.palgrave-journals.com/gpp/ Weather Index Insurance and Climate Change:

More information

COP 21: Understanding insurance in the Paris Package

COP 21: Understanding insurance in the Paris Package COP 21: Understanding insurance in the Paris Package Koko Warner, Laura Schaefer, Michael Zissener 1. COP 21: The Paris Package On 12 December 2015, 195 negotiating Parties to the UN Framework Convention

More information

Global water resources under increasing pressure from rapidly growing demands and climate change, according to new UN World Water Development Report

Global water resources under increasing pressure from rapidly growing demands and climate change, according to new UN World Water Development Report WWDR4 Background Information Brief Global water resources under increasing pressure from rapidly growing demands and climate change, according to new UN World Water Development Report As demand for water

More information

MICROINSURANCE. Virginia Tan, Allen & Overy LLP. protection, risk

MICROINSURANCE. Virginia Tan, Allen & Overy LLP. protection, risk MICROINSURANCE Virginia Tan, Allen & Overy LLP Type: Legal Guide Published: June 2012 Last Updated: June 2012 Keywords: Microinsurance, protection, risk This document provides general information and comments

More information

sample The IPCC Special Report on Managing the Risks of Extreme Events and Disasters to Advance Climate Change Adaptation

sample The IPCC Special Report on Managing the Risks of Extreme Events and Disasters to Advance Climate Change Adaptation sample The IPCC Special Report on Managing the Risks of Extreme Events and Disasters to Advance Climate Change Adaptation A changing climate leads to changes in extreme weather and climate events 2 Impacts

More information

7/10/2012 7:26 AM. Introduction

7/10/2012 7:26 AM. Introduction Money to burn? Comparing the costs and benefits of drought responses in... 1 of 8 SUBMISSION GUIDELINES ARCHIVES MAST HEAD ABOUT Keywords: commercial destocking, drought, economics, food aid, humanitarian

More information

How to Design and Update School Feeding Programs

How to Design and Update School Feeding Programs CHAPTER 7 How to Design and Update School Feeding Programs Previous chapters highlight the need to improve the design of new school feeding programs and to revisit existing programs with a view toward

More information

Food Security in a Volatile World

Food Security in a Volatile World Issues in Brief Food Security in a Volatile World Developments in agriculture over the last fifty years have increased yields sufficiently to provide on average more than enough food for every person on

More information

Climate Change Impacts in the Asia/Pacific Region

Climate Change Impacts in the Asia/Pacific Region Climate Change Impacts in the Asia/Pacific Region Global CC threat CC in the A/P region The Stern Review and IPCC 4 th Assessment Report both state that climate change will have adverse impact on people

More information

Demand for Complementary Financial and Technological Tools for Managing Drought Risk: Evidence from Rice Farmers in Bangladesh

Demand for Complementary Financial and Technological Tools for Managing Drought Risk: Evidence from Rice Farmers in Bangladesh Demand for Complementary Financial and Technological Tools for Managing Drought Risk: Evidence from Rice Farmers in Bangladesh Patrick S. Ward, International Food Policy Research Institute, p.ward@cgiar.org

More information

A review of social protection experiences in Africa Draft paper by G. Mutangadura

A review of social protection experiences in Africa Draft paper by G. Mutangadura A review of social protection experiences in Africa Draft paper by G. Mutangadura Introduction Social protection has been defined by the UN in 2001 to be The set of public and private policies and programmes

More information

FEED 2011. The International Forum on Strategic Studies for Agriculture and Livestock Development and Respect for the Climate. Deborah La Franchi

FEED 2011. The International Forum on Strategic Studies for Agriculture and Livestock Development and Respect for the Climate. Deborah La Franchi FEED 2011 The International Forum on Strategic Studies for Agriculture and Livestock Development and Respect for the Climate Deborah La Franchi CEO & President, Strategic Development Solutions Financing

More information

IFC Global Index Insurance Facility Response to the EU Green Paper on the insurance of natural and man-made disasters

IFC Global Index Insurance Facility Response to the EU Green Paper on the insurance of natural and man-made disasters IFC Global Index Insurance Facility Response to the EU Green Paper on the insurance of natural and man-made disasters 1 2 Table of Contents Insurance pricing as an insurance market-based incentive to promote

More information

Can financial innovations be structured to address climate risk of smallholder farmers?

Can financial innovations be structured to address climate risk of smallholder farmers? structured to address climate risk of Dr. Jerry Skees H.B. Price Professor, University of Kentucky President, GlobalAgRisk, Inc. European MicroFinance Week Luxembourg November, 0 More than 0 years of varied

More information

SVRK Prabhakar IGES, Japan. Presented at Asia-Pacific Climate Change Adaptation Forum 2014, 1-3 October 2014, Kuala Lumpur, Malaysia

SVRK Prabhakar IGES, Japan. Presented at Asia-Pacific Climate Change Adaptation Forum 2014, 1-3 October 2014, Kuala Lumpur, Malaysia SVRK Prabhakar IGES, Japan Presented at Asia-Pacific Climate Change Adaptation Forum 2014, 1-3 October 2014, Kuala Lumpur, Malaysia Typical view of disaster recovery: Infrastructure Health Education Transportation

More information

Social protection, agriculture and the PtoP project

Social protection, agriculture and the PtoP project Social protection, agriculture and the PtoP project Benjamin Davis Workshop on the Protection to Production project September 24-25, 2013 Rome What do we mean by social protection and agriculture? Small

More information

Default & quality, performance But What s for?

Default & quality, performance But What s for? Training Workshop on SARRA-H Crop Model for English Speaking Meteorological Services in West Africa 24-28 FEBRUARY 214,, Banjul (Gambie) Default & quality, performance But What s for? Présenté par Christian

More information

Long Term Recovery and Rehabilitation. Issues for discussion. Recovery

Long Term Recovery and Rehabilitation. Issues for discussion. Recovery Long Term Recovery and Rehabilitation Issues for discussion Recovery The restoration, and improvement where appropriate, of facilities, livelihoods and living conditions of disaster-affected communities,

More information

Technical Note 4 A Comparison of Indemnity and Index Insurances. Insurance for Climate Change Adaptation Project

Technical Note 4 A Comparison of Indemnity and Index Insurances. Insurance for Climate Change Adaptation Project 4 Technical Note 4 A Comparison of Indemnity and Index Insurances Insurance for Climate Change Adaptation Project Technical Note 4 A Comparison of Indemnity and Index Insurances Deutsche Gesellschaft für

More information

CROP INSURANCE IN INDIA - A BRIEF REVIEW

CROP INSURANCE IN INDIA - A BRIEF REVIEW Pinnacle Research Journals 20 CROP INSURANCE IN INDIA - A BRIEF REVIEW VISHITA KHANNA*; KEYUR UPADHYAY**; HARSHIL GANDHI*** ABSTRACT *International Agribusiness Management Institute, **International Agribusiness

More information

Micro Crop Insurance and Protecting the Poor Lessons From the Field

Micro Crop Insurance and Protecting the Poor Lessons From the Field Micro Crop Insurance and Protecting the Poor Lessons From the Field Aaron Oxley CTO, Micro Insurance Agency aaron.oxley@microinsuranceagency.com The Program Who are we an what do we do? Who are the poor?

More information

Famine Early Warning Systems Network SOUTHERN AFRICA FOOD SECURITY BRIEF FEBRUARY 2005

Famine Early Warning Systems Network SOUTHERN AFRICA FOOD SECURITY BRIEF FEBRUARY 2005 Famine Early Warning Systems Network SOUTHERN AFRICA FOOD SECURITY BRIEF FEBRUARY 2005 CONTENTS Executive Summary... 1 Season Progress and Production Outlook... 1 Current Food Security Summary... 2 Regional

More information

Session 3 - Innovations in Management of Agricultural and Weather Data

Session 3 - Innovations in Management of Agricultural and Weather Data Session 3 - Innovations in Management of Agricultural and Weather Data Nuno Meira Congrès International sur l'assurance et la réassurance des risques agricoles Marrakech, MAROC 29 au 31 janvier 2014 Agriculture

More information

AN OVERVIEW OF VULNERABILITY ANALYSIS AND MAPPING (VAM)

AN OVERVIEW OF VULNERABILITY ANALYSIS AND MAPPING (VAM) AN OVERVIEW OF VULNERABILITY ANALYSIS AND MAPPING (VAM) Contents: What is Vulnerability? Ability to Cope What does VAM do? How to Undertake VAM Assistance to Country Offices The Goals of VAM The broad

More information

THE MASTERCARD FOUNDATION: RURAL AND AGRICULTURAL FINANCE STRATEGY

THE MASTERCARD FOUNDATION: RURAL AND AGRICULTURAL FINANCE STRATEGY THE MASTERCARD FOUNDATION: RURAL AND AGRICULTURAL FINANCE STRATEGY SEPTEMBER 2015 The MasterCard Foundation works with visionary organizations to provide greater access to education, skills training and

More information

Insurance Design for Developing Countries

Insurance Design for Developing Countries Department of Statistics, University of Oxford Centre for the Study of African Economies, University of Oxford ACTUARIAL TEACHERS & RESEARCHERS CONFERENCE 2011, OXFORD 14 JULY 2011 Background Being poor

More information

Current capabilities in the analysis of climate risks and adaptation strategies in critical areas

Current capabilities in the analysis of climate risks and adaptation strategies in critical areas Current capabilities in the analysis of climate risks and adaptation strategies in critical areas M. Arif Goheer Global Change Impact Studies Centre (GCISC) Islamabad- 44000, Pakistan Symposium on Climate

More information

May 15, 2015. Government & Industry Affairs

May 15, 2015. Government & Industry Affairs Community Resilience to Natural Disasters and the Role of the Insurance Industry The Association of Insurance Compliance Professionals (AICP) Great Lakes Chapter May 15, 2015 Government & Industry Affairs

More information

Guideline for Stress Testing the Climate Resilience of Urban Areas

Guideline for Stress Testing the Climate Resilience of Urban Areas Netherlands Ministry of Infrastructure and Environment Delta Programme Urban Development and Reconstruction Guideline for Stress Testing the Climate Resilience of Urban Areas Extended summary Version 1.0

More information

The Impact of Formal Insurance Provision on Farmer. Behavior: Evidence from Rural Zambia

The Impact of Formal Insurance Provision on Farmer. Behavior: Evidence from Rural Zambia PRIMCED Discussion Paper Series, No. 67 The Impact of Formal Insurance Provision on Farmer Behavior: Evidence from Rural Zambia Ken Miura and Takeshi Sakurai March 2015 Research Project PRIMCED Institute

More information