Review of Pilot Projects on Index-Based Insurance in Africa: Insights and Lessons Learned

Marcantonio, Federica Di; Francois, Kayitakire

doi:10.1007/978-3-319-59096-7_16

Cited by 11 publications

(10 citation statements)

References 28 publications

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“…In practice, national governments subsidize agricultural insurance heavily and global policymakers have enacted initiatives by committing substantial funds to agricultural insurance (Collier et al, 2009; P. Hazell et al, 2017; Müller et al, 2017). In recent years, international development agencies and national governments have implemented increasingly large‐scale policy projects across many low‐income countries (Di Marcantonio & Kayitakire, 2017), underscoring the importance of agricultural insurance in boosting agricultural production. However, the demand for agricultural insurance among smallholders in developing countries remains low (Habtemariam et al, 2021).…”

Section: Introductionmentioning

confidence: 99%

The role of agricultural insurance in boosting agricultural output: An aggregate analysis from Chinese provinces

et al. 2022

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Agricultural insurance is a significant driver of agricultural development worldwide. In this paper, a fixed‐effects panel approach and instrumental variable regressions are used to examine the impact of agricultural insurance on agricultural output in China. The study is based on panel data from 31 Chinese provinces over the period 2004 to 2018. Findings indicate that agricultural insurance led to a significant increase in aggregate agricultural output across provinces. The results remain robust when potential endogeneity in insurance uptake is considered. In addition, mechanism tests were performed to identify the channels through which insurance influences productivity. These show that agricultural insurance contributes to increasing labor productivity and the area of cultivated land per capita and encourages specialized planting, all of which promote growth in agricultural production. Finally, agricultural insurance plays a more important role in Eastern China and nonmajor crop‐producing areas [EconLit Citations: Q13, Q18].

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Section: Introductionmentioning

confidence: 99%

The role of agricultural insurance in boosting agricultural output: An aggregate analysis from Chinese provinces

et al. 2022

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“…Micro-insurance, particularly weather index-based insurance, can strengthen smallholder farmers adaptive capacity by reducing financial risks from climatic events, but has not been widely implemented in Sub-Saharan Africa (Fisher et al, 2015;Greatrex et al, 2015;Di Marcantonio and Kayitakire, 2017).…”

Section: Microfinance and Weather Index-based Insurancementioning

confidence: 99%

Climate change adaptation options to inform planning of agriculture and food systems in The Gambia: A systematic approach for stocktaking

Segnon

Zougmoré²,

Green³

et al. 2022

Front. Sustain. Food Syst.

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Identifying and assessing adaptation options are key pre-requisite steps to adaptation prioritization and effective adaptation planning. In this paper, we presented a systematic approach for adaptation stocktaking, combining a systematic mapping and an outcome-oriented and evidence-based assessment, illustrated using the case of The Gambia. This study systematically mapped 24 adaptation options that can potentially inform adaptation planning in The Gambia agriculture and food systems and assessed how the identified options contribute to the pillars of Climate-Smart Agriculture. Because of the paucity of evidence sources from The Gambia, we collated evidence from both The Gambia and the West Africa region. We found that many of the documented options, such as climate-resilient crop varieties, crop diversification, climate information use, and weather indexed-based insurance have the potential to increase agricultural productivity and income while building resilience to climate change. While several options, such as soil and water conservation practices can positively contribute to climate change mitigation, others such as manure and inorganic fertilizers can have no or negative impacts on mitigation. Agroforestry practices and System of Rice Intensification have the potential to make a triple impact. The paucity of evidence from The Gambia and the highly contextual and differential impacts of the identified adaptation options underscore the importance of careful consideration of barriers and enablers when developing and deploying policy and interventions to sustainably increase productivity and income while building resilience to climate risks and reducing GHGs emissions. Stakeholder engagement and participatory research action are crucial in selecting and testing the priority adaptation options which can maximize their potentials in specific agricultural and food system contexts, such as in The Gambia. Because of the heterogeneity in household vulnerability and socioecological circumstances, targeting options to the right contexts will also be crucial to avoid maladaptation. We highlighted key knowledge gaps in the understanding of the effectiveness and feasibility of the identified adaptation options in The Gambia. Beyond The Gambia, the approach can also be useful for and replicated in other least developed countries in the West African region, that are currently developing their National Adaptation Plan.

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“…Globally, however, less than 20% of smallholder farmers have any form of agricultural insurance [22]. Although the estimated global agricultural insurance premium volume almost doubled in the period 2004-2007, it remained low in African countries where it roughly reached an average of 0.13% of the 2007 agricultural GDP [70]. As a result, some scholars claim that only about 1.3% of the smallholder farmers in SSA have agricultural insurance [71].…”

Section: Weather Index Insurancementioning

confidence: 99%

Bundling Weather Index Insurance with Microfinance: Trekking the Long Road between Expectations and Reality – A Study on Sub-Saharan Africa

Shumba¹

2022

Sustainable Development

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Food production in sub-Saharan Africa (SSA) is exposed to climatic variations and weather-related shocks which affect agricultural output beyond the manageable limits of smallholder farmers. To manage food production uncertainties, weather index insurance (WII) pilot projects have been launched across SSA since the early 2000s. Due to low adoption rates among smallholder farmers, insurance providers have partnered with risk aggregators such as microfinance institutions to foster the demand for and uptake of WII. Despite this, demand for WWI remains low. This chapter seeks to explore the gap between the assertion, that WII is a promising risk transfer mechanism for smallholder farmers in SSA and the realisation that, even where microfinance is made available, subscription rates among smallholder farmers rarely rise. The practice of linking insurance with credit is considered to be important because, in principle, when smallholder farmers have access to insurance, they pose less risk to creditors. In this sense, insurance can crowd-in credit, the lack of which has long been identified as a major, if not the main, constraint for smallholders in developing countries.

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Review of Pilot Projects on Index-Based Insurance in Africa: Insights and Lessons Learned

Cited by 11 publications

References 28 publications

The role of agricultural insurance in boosting agricultural output: An aggregate analysis from Chinese provinces

The role of agricultural insurance in boosting agricultural output: An aggregate analysis from Chinese provinces

Climate change adaptation options to inform planning of agriculture and food systems in The Gambia: A systematic approach for stocktaking

Bundling Weather Index Insurance with Microfinance: Trekking the Long Road between Expectations and Reality – A Study on Sub-Saharan Africa

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