Crop microinsurance: tackling poverty, one insurance policy at a time

Abstract

Crop index microinsurance is a novel product that has been piloted and implemented in many developing countries. We attempt to give an overview of crop index microinsurance, covering the major issues needed to design, price and implement a crop index microinurance programme. In some ways, providing insurance to the poor is fundamentally different to providing insurance to the middle-income or rich; in other ways, including in the actuarial fields of product design, pricing and risk financing, there are strong similarities. We offer a stylised discussion of these differences and similarities, with particular reference to issues of potential interest to actuaries, and propose an actuarial framework for crop index microinsurance. Case studies from Malawi and the Philippines provide examples for what does and what does not seem to work in crop index microinsurance, and motivation for further work needed.

Corporate Social Responsibility: Institutional Behavior Differences in Extractive Industry

“…Securities exchanges are frequently little, lightly exchanged, and offer meagre prospects for generous equity saturation [70]. By correlation, Blowfield and Dolan [71] state that the financial institution segment is genuinely very much developed, yet banks oblige considerable measures of insurance, charge high premium rates, and have a tendency to loan just for the fleeting period to reduce nonpayment risk [72]. Moreover, business environments in sub-Saharan Africa have not been generally good, with sudden political movements, product value fluctuations, and immature institutions and poor physical infrastructural systems [73].…”