This project was designed to pilot Weather Index Based Crop Insurance products for farmers, especially small and marginal farmers of Bangladesh, to address some inherent deficiencies in traditional crop insurance. The pilot was conducted in three Districts(Noakhali, Rajshahi and Sirajgunj)identified bySadharanBima Corporation (SBC) of Bangladesh. Index Insurance Product was designed to cover drought and flood risks are piloted. Awareness generation activities were undertaken, wherein 12,500 farmers were covered. 6500 farmers were enrolled for the index insurance product in 7 pilots conducted over three years. Training programs were conducted to build capacities of staff of SBC. Over 900 personnel were trained. Under this project various distribution channels i.e., Agri input suppliers, Banks and MFIs are been explored for the insurance distribution. As part of this project the draft regulatory guidelines are been made ready for the sector.
The main objective of the multi-year “Climate Resilience through Risk Reduction (RES RISK)” project is to enhance the resilience of vulnerable communities to climate change by developing pro-poor micro insurance solutions. The project was undertaken in flood and drought prone regions. Under this project various risk classes of insurance starting from health, livestock and agriculture were successfully launched. Health insurance was launched purely on a community based approach and Livestock was launched in a two tier model where in a part of the risk (40%) was retained by the community and the remaining risk was successfully transferred to the mainstream insurer and Agriculture Insurance is been fully under the market led model by involving a insurer in to a state sponsored agriculture insurance program. The project has successfully implemented micro insurance model projects in the district of Muzaffarpur and Meenapur in Bihar and four blocks of district Beed in Maharashtra.
Training and capacity building of the communities and the awareness building over the community members. Innovative tools and techniques are been developed and deployed for awareness/ capacity building. Over the period under the different risk classes around 15000 households are been provided with the insurance solutions.
Project has worked in assessing the Sri Lankan market and environment to introduce index-based crop insurance scheme, setting recommendations on appropriate product schemes and configurations by collaborating with other experts, identifying the locations for implementation of the crop insurance scheme and also to develop the operational manual for the program. In addition, the study examined the existing crop insurance schemes, crops cultivated and capacity of important stake holders including SANASA insurance company in distribution of existing insurance products, reinsurance capacity and MIS, in partnership with other partners (DID and SANASA).
The project reviewed the innovations in Agriculture Insurance space by private sector insurance companies and analyzed the relative merits of these innovations in order to identify the successful innovations that can be replicated in other countries. The Household surveys were facilitated as a part of Participatory Rural Appraisal(PRA). Case studies on successful interventions of both the countries were prepared. All insurers, representatives from provincial Governments were interviewed. Country level consultative stakeholders workshops were organised in Zambia and Malawi. Information on outreach and agricultural insurance penetration were studied. The study formed part of compendium brought out by IFAD and WFP on globally scalable models for Weather Index Insurance.
Under the project, various IBWI models piloted and implemented in various countries were studied in order to assess the replicability of the reviewed models in Bangladesh. Interactions with various stake holders in the Agriculture/Risk Management/Rural Credit sector in Bangladesh to assess the feasibility/scope and appropriateness of using Index Insurance as a means to improve access to credit for poor farmers were undertaken to assess weather vulnerability and sources of Meteorological Data and for Market Demand Assessment for weather index based insurance. Pitch Book for potential investors were developed. Focus Group Discussion with the farmers in various agro-economic zones were conducted to identify key crops and geographical regions especially impacted by adverse weather effects and to determine correlation between yield damages and specific weather conditions. Risk mitigation strategies to manage agriculture risks and to suggest the model and channels for the future intervention were identified. Sensitization efforts were made for uptake of weather index insurance by various stakeholders. The findings were disseminated through workshop.
Project attempted to examine the basic conditions required for developing a weather index insurance product for the agricultural sector and related financial mechanisms in the Limpopo Valley to pave the way for a pilot application within an integrated climate-resilient rural development project. Weather index was developed after examining technical feasibility of developing a weather index, the prevailing weather-related hazards that affect crop production, the meteorological network and its stability, reliability, existing and planned data transfer infrastructure, historical weather records, primary subsistence crops, available information on cropping strategies and production were considered.Financial and institutional feasibility has been done by considering the pricing of the product, the potential client base, existing insurance mechanisms and agents in distribution channels, factors that may inhibit demand for an insurance product. A detailed study on primary subsistence crops, cropping strategies and production was conducted. Modelling of possibilities of various natural disasters such as floods, droughts and excess rain has been undertaken. A plan has been developed to manage after effects of disasters through Index Insurance.
The project focused on establishing an inventory of existing agriculture insurance products, review their market penetration and performance, and analyze market opportunities and gaps for new insurance products in Zambia, with a marked focus on the Kafue and Barotse sub-basins. Project attempted to assess agricultural and Climate data in Zambia in relation to the requirements for developing a weather index-based insurance product.Global best practices in weather index-based insurance for livestock and crops were reviewed and identified the products like those including risk reduction components most relevant to Zambia, with a marked focus on the Kafue and Barotse sub-basins. A detailed business plan including implementation plan has been developed for piloting insurance products to build climate resilience in the agriculture sector that includes potential partners, interventions, and expected timelines.
The project on climate change adaptation, supported by GTZ, has identified micro insurance as one of the key tools to enable poor and low income households to cope with climate change risks. The study analyzed the present status of the sector and designed the potential component of micro-insurance in the climate change adaptation program with a special focus on index-based insurance products. Appraisal of the sector was carried out through a mix of secondary data collection and primary information gathering techniques. Identification of the technical and geographical areas for potential insurance models, insurance schemes and also to propose process/mechanism and resources for the development and deployment of Insurance was suggested. Capacity development needs of vulnerable groups/communities were identified to apply and manage insurance models and innovative insurance products.
A study was conducted by involving various stakeholders to understand the Micro Insurance sector and constraints and opportunities in two countries. Detailed recommendations on roles of various stakeholders, strategy for promotion of Micro Insurance in these countries were provided. . The research was focused on MFIs and NGOs and Government authorities, leading insurers, central bank and the Insurance regulatory authorities.
The project involved understanding the micro insurance scenario in India and suggest a road map for UNDP for its intervention on policy and operational support to this sector. Both primary and secondary information was used to assess the current trend and future potential. Using this set of data the thrust areas for development of sector was enumerated as well as the possible roles which UNDP could play in promoting the sector in India.
The project examined various initiatives and products in distribution for Micro Insurance in Sri Lanka. The Landscape study examined the various initiatives and products as part of the study. Various stakeholders were consulted for understanding the sector including the Government owned and the private sector. The second part of the study focused on the Micro insurance distribution through the Mobile Network Operators in Asia. The major players in the market were reached out to understand their perspective and future plans in scaling up the Micro insurance.