Agri11 session iii-part i-planet guarantee


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Agri11 session iii-part i-planet guarantee

  1. 1. One World to protect « Assurance Récolte Sahel »1
  2. 2. SummaryI. Overview of PlaNet GuaranteeII. Basics of index insuranceIII. The West African Crop Insurance initiativeIV. Network of PartnersV. Possibilities for Commercial Development 2
  3. 3. I. Overview of PG • Alleviation of poverty through the development A social business of microinsurance • Profits reinvested in the business • Research and Development 2 business lines • Selling microinsurance products A link between PlaNet Guarantee - intermediary in Distribution Insurer/Reinsurerinsurers, reinsurers Channels - access microinsurance - risk to low-income management and MFIs populations capacitiesExperienced in crop • Feasibility studies, pilots, full scale projects insurance
  4. 4. II. Basics of Index Insurance Index insurance is not linked to individual losses but linked to global parameters such as a weather stations or satellite images Benefits of index insurance:  Coverage of the hardest risks to manage  Elimination of adverse selection (likelihood weakest would sign up and strongest would not)  Because cost is lower more adapted to purchasing power of farmers  Automatic claims payout 4
  5. 5. III. The West African Crop Insurance Initiative - Context PlaNet Guarantee is implementing the first regional index insurance platformProject targets Senegal, Mali, Burkina Faso, Benin, Côte d’Ivoire, Niger and Togo.Population of approximately 50,000,000 ,of which 30,000,000 are in the agriculturalsector.Agriculture is the main economic activity representing a large portion of GDP andemploying 70% of the active population 5
  6. 6. III. The West African Crop Insurance Initiative - ObjectivesOverall Objective:Reduce the fluctuation in agricultural income and secure the financing mechanism of agricultureReduces the risk of banks and microfinance institutions and encourages them to lendto the sectorBy increasing access to credit and securing the financial sector the projects contributesto growth of the overall agricultural sector.Budget: 4.4 M USD 6
  7. 7. III. The West African Crop Insurance Initiative - Expected results Cover 60,000 farmers by 2016  Raise awareness on agricultural insurance amongst 165,000 farmersREGIONAL PLATEFORM 7
  8. 8. III. The West African Crop Insurance Initiative – How it works Farmer In times ofbuys inputs Premium is The insurer PG collects poor from an included in pays out to list of all harvest,agri-dealer the price of the insured participants the index ison credit or the inputs parties triggered with cash Management of the entire process done via the regional platform 8
  9. 9. III. The West African Crop Insurance Initiative - Current Status of Project 2 pilots for rain deficit insurance:  Pilot for average yield insurance: Mali Burkina Faso Mali  Based on area yield  Based on satellite data  Covers cotton  Covers maize  Partners :  Partners:  I-4 : Research and development on  Allianz Africa & Swiss Re : insurance and indexes & impact study reinsurance  Allianz Africa & Swiss Re : insurance  Oxfam (Mali) : Training and raising and reinsurance awareness  Oxfam (Mali) : Training and raising  EARS : Technical Index expert awareness  Soro Yiriwaso (Mali) / CVECA Boucle du  GIE (CMDT, OHVN, UN-SCPC) : Mouhoun, MECAP (Burkina) : Subscription Distribution, Subscription  BNDA : Banking Group, beneficiary 9
  10. 10. IV. The Network of PartnersThe project is implemented by PlaNet Guarantee and the following organizations:Allianz Africa (France)Swiss Re (Switzerland :Oxfam GB (Great Britain):CIRAD (France)CNAAS (Senegal)PlaNet Finance (France) 10
  11. 11. V. Possibilities for Commercial Development The advantages of participating in the distribution of the products: – Secure income in areas prone to in the event of natural disasters or rainfall deficit – Permits to be remunerated for distributing the insurance product. – Enhance quality of farmer production – Reinforce the confidence and the link with farmers – Part of a social goal to reduce vulnerability in the region 11
  12. 12. CONTACT PLANET GUARANTEE 44 rue de Prony • 75017 Paris, FRANCE Olivier Laboue – President Mathieu Dubreuil – Project Manager Anaar Kara – Director of Partnerships 12