Crop microinsurance in support of    climate change adaptation
                 

                                        ...
Why crop microinsurance in Africa ? "•    Allianz Africa : 11 countries in West     and Central Africa; Madagascar ;     1...
Weather index insurance!Allianz Africa – AGRA/AECF partnership!•  2 index pilots in rain deficit insurance in Mali and Burk...
Weather index insurance /2! •  Covered 316 maize farmers in 2011!    –  Gross premium: 2.4 (Burkina Faso) + 3.5       (Mal...
The model"•  Determination of relative evapotranspiration that 
   mirrors crop growth and development!•  Definition of gro...
 Exit point""                                         drought case                    140000                    120000   P...
Crop yield insurance"–  1 pilot on average yield in Mali!–  The yield has been calculated on (2003-2008)   data :
   • tri...
First report"•  Pioneer experience in West Africa!•  Voluntary insurance!•  More than insurance: linked to a loan therefor...
Scaling up and out"•  Focus on the rain deficit process!•  To continue with AGRA initiative: Objective to protect   15,000 ...
Thanks for your attention!"
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Learning Event No 6, Session 1, From Agriculture and Rural Development Day (ARDD) 2011

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What role can the private sector play in climate smart smallholder agriculture in Africa? Presentation from Agriculture and Rural Development Day (ARDD) 2011 by Patrick Mommeja, Crop Insurance in Support of climate change adaptation.

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Learning Event No 6, Session 1, From Agriculture and Rural Development Day (ARDD) 2011

  1. 1. Crop microinsurance in support of climate change adaptation
 

 
 Patrick Mommeja" " Head, Life Related Insurance " Allianz Africa! ! !Learning Event 6: What role can the private sector play in climate smart smallholder agriculture in Africa?! Agriculture and Rural Development Day! COP 17! Durban, South Africa! 3 December 2011! !
  2. 2. Why crop microinsurance in Africa ? "•  Allianz Africa : 11 countries in West and Central Africa; Madagascar ; 15 subsidiaries,!•  Microinsurance, a social commitment since 2005 (Allianz Group) and 2007 (Allianz Africa),!•  AGRA enabled Allianz Africa to venture space: to build resilience of African smallholders to climate change!
  3. 3. Weather index insurance!Allianz Africa – AGRA/AECF partnership!•  2 index pilots in rain deficit insurance in Mali and Burkina Faso launched !2011!•  Distribution by local MFIs, insurance beneficiaries!•  Based on satellite data!
  4. 4. Weather index insurance /2! •  Covered 316 maize farmers in 2011! –  Gross premium: 2.4 (Burkina Faso) + 3.5 (Mali): 5.9 million FCFA ! –  Claims: 4.6 million FCFA i.e. 100-150.000 FCFA/ha! –  Claim ratio: 78%! •  Solution to cope with fraud and moral hazard!
  5. 5. The model"•  Determination of relative evapotranspiration that 
 mirrors crop growth and development!•  Definition of growing period starting with a index > 65 mm!•  Duration of growing period: 12 decades!•  Determination of payout: max {0, min (tick * (trigger- relative evaporation index), policy maximum payout)}!•  Tick = maximum payout/(trigger – exit)!•  Trigger point = starting index of the insurance !•  Exit point = ending index of the insurance
 
 !
  6. 6.  Exit point"" drought case 140000 120000 Payout [F CFA] 100000 80000 60000 40000 20000 0 100 150 200 250 300 350 400 Cumulated rainfall [mm] Trigger point" "
  7. 7. Crop yield insurance"–  1 pilot on average yield in Mali!–  The yield has been calculated on (2003-2008) data :
 • trigger point : 900 kg/h
 • coverage : 95,000 FCFA/h,
 !–  Distribution has been made by CMDT for the BMDA the beneficiary of the insurance!–  Covered 326 cotton farmers in 2011
 ! !
 ! !
 !
  8. 8. First report"•  Pioneer experience in West Africa!•  Voluntary insurance!•  More than insurance: linked to a loan therefore means to ease access to credit !
 But"•  Weakness of local insurance capacities!•  Lack of knowledge!•  Population wary of private insurance!•  Unreliable data( cotton),!•  Costly pilot due to farmer heterogeneity with regard to risk exposure and in agricultural production!
  9. 9. Scaling up and out"•  Focus on the rain deficit process!•  To continue with AGRA initiative: Objective to protect 15,000 farmers in 2012!•  Explore GIFF management project (West African crop insurance initiative) runs by PLANET GARANTEE!•  Use new technologies to reach the farmers (mobile phone, remittances)!•  But three main issues:
 • to keep up our reinsurance capacity
 • to reduce the cost of crop insurance for the farmer 
 • to approach the specific populations 
 !
  10. 10. Thanks for your attention!"

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