At the Workshop in Index Insurance to Promote Agriculture and Livestock Development held on December 3rd, 2015 in Addis Ababa, Ethiopia, Professor Michael Carter of UC Davis and Director of the Feed the Future BASIS Assets and Market Access Innovation Lab presented on the challenges that need to be considered before implementing index insurance initiatives
The Design and Implementation of Index Insurance Inititatives: 3 Challenges f...BASIS AMA Innovation Lab
BASIS Director, Michael Carter, presented at the workshop on Developing Policy Innovations for the Pastoralist Rangelands, hosted by ILRI, Nairobi in June of 2015.
Index Insurance for Small-holder Agriculture: What We Have Learned about Impa...BASIS AMA Innovation Lab
Michael Carter discusses key learnings from index insurance projects for smallholder farmers. Three main points:
1) Studies in Ghana, Mali, and Kenya found that index insurance increased investment and reduced reliance on costly coping strategies during droughts, showing it can have real development impacts by reducing risk.
2) However, basis risk from poorly correlated indexes undermines trust and impacts. New solutions using satellite data and dual-scale contracts have shown promise in reducing basis risk.
3) Behavioral experiments revealed farmers' aversion to ambiguity and compound risk reduces demand, while willingness to pay increased with contracts framing the premium as forgivable in bad years. Better understanding farmer behavior can improve uptake and impact.
At the Workshop on Innovations in Index Insurance to Promote Agricultural and Livestock Development in Ethiopia, held December 3rd, 2015 in Addis Ababa, Craig McIntosh of UC San Diego, presented on challenges and pitfalls of implementing rainfall insurance
Presentation by Shukri Ahmed, Rene Gommes , Craig McIntosh and Alexander Sarris at the Index insurance for agriculture in Ethiopia, Addis Ababa, Ethiopia, 9 December 2010.
The Impact of Rainfall Index insurance in Amhara, Ethiopiaessp2
1. The document describes a project that tested the impact of rainfall index insurance and interlinked credit programs for smallholder farmers in Amhara, Ethiopia. The project was a collaboration between researchers and private insurance and banking companies in Ethiopia.
2. Standalone insurance and interlinked insurance that bundled credit with insurance were tested. Uptake of both products was low initially but increased with subsidies. Interlinked credit was difficult to implement due to reluctance of agricultural cooperatives and government involvement in credit.
3. The impact of the insurance programs was evaluated using a randomized controlled trial design with surveys of farmers over time and an individual-level randomization of insurance subsidies. Preliminary analysis found balance across treatment groups and
This document discusses adapting to climate change in wildfire management. It notes that 70% of economic losses from natural disasters over the past decade were uninsured, creating a large protection gap. Insurance can help governments increase financial resilience by providing funds for emergency response, reconstruction, and supporting uninsured households after disasters. Parametric insurance in particular provides fast payouts based on an index or trigger without a claims assessment process, making it an affordable option. However, changes in disaster frequency and severity due to climate change make risk assessment challenging.
Webcast - TRIA GAO Cyber Threats ReportJasonSchupp1
Centers for Better Insurance (CBI) provides unbiased analysis and insights about regulatory issues facing the insurance industry. The document discusses upcoming analysis from the Government Accountability Office on cyber threats and insurance. It raises questions about what events a cyber insurance program should cover, which cyber benefits insurers should be required to offer, and when the government should assume losses. CBI will examine these issues in the context of the Terrorism Risk Insurance Program and how it could be amended to address cyber threats.
The Design and Implementation of Index Insurance Inititatives: 3 Challenges f...BASIS AMA Innovation Lab
BASIS Director, Michael Carter, presented at the workshop on Developing Policy Innovations for the Pastoralist Rangelands, hosted by ILRI, Nairobi in June of 2015.
Index Insurance for Small-holder Agriculture: What We Have Learned about Impa...BASIS AMA Innovation Lab
Michael Carter discusses key learnings from index insurance projects for smallholder farmers. Three main points:
1) Studies in Ghana, Mali, and Kenya found that index insurance increased investment and reduced reliance on costly coping strategies during droughts, showing it can have real development impacts by reducing risk.
2) However, basis risk from poorly correlated indexes undermines trust and impacts. New solutions using satellite data and dual-scale contracts have shown promise in reducing basis risk.
3) Behavioral experiments revealed farmers' aversion to ambiguity and compound risk reduces demand, while willingness to pay increased with contracts framing the premium as forgivable in bad years. Better understanding farmer behavior can improve uptake and impact.
At the Workshop on Innovations in Index Insurance to Promote Agricultural and Livestock Development in Ethiopia, held December 3rd, 2015 in Addis Ababa, Craig McIntosh of UC San Diego, presented on challenges and pitfalls of implementing rainfall insurance
Presentation by Shukri Ahmed, Rene Gommes , Craig McIntosh and Alexander Sarris at the Index insurance for agriculture in Ethiopia, Addis Ababa, Ethiopia, 9 December 2010.
The Impact of Rainfall Index insurance in Amhara, Ethiopiaessp2
1. The document describes a project that tested the impact of rainfall index insurance and interlinked credit programs for smallholder farmers in Amhara, Ethiopia. The project was a collaboration between researchers and private insurance and banking companies in Ethiopia.
2. Standalone insurance and interlinked insurance that bundled credit with insurance were tested. Uptake of both products was low initially but increased with subsidies. Interlinked credit was difficult to implement due to reluctance of agricultural cooperatives and government involvement in credit.
3. The impact of the insurance programs was evaluated using a randomized controlled trial design with surveys of farmers over time and an individual-level randomization of insurance subsidies. Preliminary analysis found balance across treatment groups and
This document discusses adapting to climate change in wildfire management. It notes that 70% of economic losses from natural disasters over the past decade were uninsured, creating a large protection gap. Insurance can help governments increase financial resilience by providing funds for emergency response, reconstruction, and supporting uninsured households after disasters. Parametric insurance in particular provides fast payouts based on an index or trigger without a claims assessment process, making it an affordable option. However, changes in disaster frequency and severity due to climate change make risk assessment challenging.
Webcast - TRIA GAO Cyber Threats ReportJasonSchupp1
Centers for Better Insurance (CBI) provides unbiased analysis and insights about regulatory issues facing the insurance industry. The document discusses upcoming analysis from the Government Accountability Office on cyber threats and insurance. It raises questions about what events a cyber insurance program should cover, which cyber benefits insurers should be required to offer, and when the government should assume losses. CBI will examine these issues in the context of the Terrorism Risk Insurance Program and how it could be amended to address cyber threats.
Using an Agroenterprise: Learning Alliances for Inclusive Value Chain SupportBASIS AMA Innovation Lab
CRS implemented Agroenterprise Learning Alliances over 5 years to help shift smallholder farmers from subsistence agriculture to competitive agroenterprise. The goal was to provide a bridge from relief to development by linking farmers to markets, diversifying crops, strengthening access to finance and services, and improving food security. Key aspects included participatory value chain development, multi-skill training for farmer groups, savings mobilization, strengthening local service providers, and integrating infrastructure, training and marketing linkages. Case studies in navy beans in Ethiopia and chickpeas in Tanzania showed increases in farmers, crops, and collective marketing. Challenges remained around skills transfer, farmer organization, value chain analysis, access to finance and information for rural
A presentation by Andy McKay from the 2009 BASIS Conference on "Escaping Poverty Traps: Connecting the Chronically Poor to the Economic Growth Agenda."
Impact of Mothers' Intellectual Human Capital and Long-Run Nutritional Status...BASIS AMA Innovation Lab
A presentation by Jere Behrman, Alexis Murphy, Agnes Quisumbing, and Kathryn Yount from the 2009 BASIS Conference on "Escaping Poverty Traps: Connecting the Chronically Poor to the Economic Growth Agenda."
Before and After the Drought: Evidence on the Impact of Index Insurance on Sm...BASIS AMA Innovation Lab
BASIS Director Michael Carter (working collaboratively with Ghada Elabed and Sarah Janzen) presented at the OECD meeting in Paris, September 2015 on the topic of index insurance and its impact on small farm investment and social protection.
A presentation by John Hoddinott from the 2009 BASIS Conference on "Escaping Poverty Traps: Connecting the Chronically Poor to the Economic Growth Agenda."
This document discusses issues related to analyzing poverty dynamics and growth. It notes that chronic poverty is best characterized by both continuous or frequent spells in poverty as well as low, flat, or negative consumption growth. The document also stresses that attrition in panel survey data could affect results if not random, and that more thorough checks for non-random attrition are needed, including considering how dropping out of the lowest or highest households could mislead analyses of chronic poverty.
Scaling-up Microfinance Products for Weather Risk Management: Three Proposals...BASIS AMA Innovation Lab
A presentation on Microfinance by Michael Carter, Professor in the Department of Agricultural & Resource Economics at University of California, Davis and the Director of the Feed the Future BASIS Assets & Market Access Research Program & I4 Index Insurance Innovation Initiative.
(From the AFD-FERDI Workshop, Paris on June 24, 2014)
Measuring the Quality of Agricultural Index Insurance: Concepts and Safe Mini...BASIS AMA Innovation Lab
A presentation on Agricultural Index Insurance by Professor Michael Carter of the University of California, Davis, and Director of the Feed the Future BASIS Assets and Market Access Innovation Lab (http://basis.ucdavis.edu). This presentation was given at a World Bank "Brown Bag" seminar on May 21, 2015.
Presentation by BASIS PI Travis Lybbert and Abbie Turiansky, along with Jean Claude O Fignole, Alix Percinthe, Sarah Belfort, Barry Shelly from OXFAM at the OXFAM Brown Bag series, February 22, 2016
DFID and Social Exclusion: the Use and Otherwise of a Concept in Internationa...BASIS AMA Innovation Lab
A presentation by Arjan de Haan and Andrew Shepherd from the 2009 BASIS Conference on "Escaping Poverty Traps: Connecting the Chronically Poor to the Economic Growth Agenda."
Flexible Response to Food Insecurity: Food Aid Programming and Impact in a New Era, a presentation by Chris Barrett from the 2009 Conference on "Escaping Poverty Traps: Connecting the Chronically Poor to the Economic Growth Agenda."
Access of Rural People Living in Poverty to Local and National Policy ProcessesBASIS AMA Innovation Lab
A presentation by Khalid El Harizi from the 2009 BASIS Conference on "Escaping Poverty Traps: Connecting the Chronically Poor to the Economic Growth Agenda."
At the Workshop on Innovations in Index Insurance to Promote Agricultural and Livestock Development in Ethiopia held on December 3rd, 2015 in Addis Ababa, Underwriting Manager of Nyala Insurance, Solomon Zegeye, presented the Insurer's perspective on an innovative inter-linked mincroinsurance and microcredit project
ASSESSMENT OF THE BURKINA FASO PROJECT: THE SAFE MINIMUM STANDARDS (SMS) METH...BASIS AMA Innovation Lab
Thomas Barré, Michael Carter & Quentin Stoeffler presented at the GAN Knowledge Sharing Forum: “Assessing value from index insurance products”, September 16, 2015.
A presentation by Julian May and Ingrid Woolard from the 2009 BASIS Conference on "Escaping Poverty Traps: Connecting the Chronically Poor to the Economic Growth Agenda."
The Dynamics of Building Political Support for Social Protection in Uganda: I...BASIS AMA Innovation Lab
A presentation by Charles Lwanga-Ntale from the 2009 BASIS Conference on "Escaping Poverty Traps: Connecting the Chronically Poor to the Economic Growth Agenda."
A presentation by Ruth Campbell from the 2009 BASIS Conference on "Escaping Poverty Traps: Connecting the Chronically Poor to the Economic Growth Agenda."
A presentation by Saurav Dev Bhatta from the 2009 BASIS Conference on "Escaping Poverty Traps: Connecting the Chronically Poor to the Economic Growth Agenda."
Parallel Realities: Exploring Poverty Dynamics using Mixed Methods in Rural B...BASIS AMA Innovation Lab
A presentation by Peter Davis and Bob Baulch from the 2009 BASIS Conference on "Escaping Poverty Traps: Connecting the Chronically Poor to the Economic Growth Agenda."
Dr. Michael Carter of UC Davis presented on the potential impacts of agricultural insurance on agricultural development & rural livelihoods at the Mobilizing a CGIAR Agricultural Insurance Community workshop in Washington, DC, 20-22 January 2014.
Webinar on Bundling agriculture index insurance with financial and non financ...Impact Insurance Facility
Bundling index insurance with other financial and non-financial services can help scale agricultural insurance. It provides incentives for farmers to purchase insurance and opportunities for other stakeholders. Index insurance has been successfully bundled with credit in places like Mali, increasing farmer investment and incomes. Insurers like ACRE bundle products with farmer groups, banks, and input suppliers. Appropriate services to bundle with include credit, seeds/fertilizers, and complementary insurance covers. Key considerations for effective bundling include pricing affordability, evaluating value for all stakeholders, and delivering bundled products that protect farmer incomes.
Using an Agroenterprise: Learning Alliances for Inclusive Value Chain SupportBASIS AMA Innovation Lab
CRS implemented Agroenterprise Learning Alliances over 5 years to help shift smallholder farmers from subsistence agriculture to competitive agroenterprise. The goal was to provide a bridge from relief to development by linking farmers to markets, diversifying crops, strengthening access to finance and services, and improving food security. Key aspects included participatory value chain development, multi-skill training for farmer groups, savings mobilization, strengthening local service providers, and integrating infrastructure, training and marketing linkages. Case studies in navy beans in Ethiopia and chickpeas in Tanzania showed increases in farmers, crops, and collective marketing. Challenges remained around skills transfer, farmer organization, value chain analysis, access to finance and information for rural
A presentation by Andy McKay from the 2009 BASIS Conference on "Escaping Poverty Traps: Connecting the Chronically Poor to the Economic Growth Agenda."
Impact of Mothers' Intellectual Human Capital and Long-Run Nutritional Status...BASIS AMA Innovation Lab
A presentation by Jere Behrman, Alexis Murphy, Agnes Quisumbing, and Kathryn Yount from the 2009 BASIS Conference on "Escaping Poverty Traps: Connecting the Chronically Poor to the Economic Growth Agenda."
Before and After the Drought: Evidence on the Impact of Index Insurance on Sm...BASIS AMA Innovation Lab
BASIS Director Michael Carter (working collaboratively with Ghada Elabed and Sarah Janzen) presented at the OECD meeting in Paris, September 2015 on the topic of index insurance and its impact on small farm investment and social protection.
A presentation by John Hoddinott from the 2009 BASIS Conference on "Escaping Poverty Traps: Connecting the Chronically Poor to the Economic Growth Agenda."
This document discusses issues related to analyzing poverty dynamics and growth. It notes that chronic poverty is best characterized by both continuous or frequent spells in poverty as well as low, flat, or negative consumption growth. The document also stresses that attrition in panel survey data could affect results if not random, and that more thorough checks for non-random attrition are needed, including considering how dropping out of the lowest or highest households could mislead analyses of chronic poverty.
Scaling-up Microfinance Products for Weather Risk Management: Three Proposals...BASIS AMA Innovation Lab
A presentation on Microfinance by Michael Carter, Professor in the Department of Agricultural & Resource Economics at University of California, Davis and the Director of the Feed the Future BASIS Assets & Market Access Research Program & I4 Index Insurance Innovation Initiative.
(From the AFD-FERDI Workshop, Paris on June 24, 2014)
Measuring the Quality of Agricultural Index Insurance: Concepts and Safe Mini...BASIS AMA Innovation Lab
A presentation on Agricultural Index Insurance by Professor Michael Carter of the University of California, Davis, and Director of the Feed the Future BASIS Assets and Market Access Innovation Lab (http://basis.ucdavis.edu). This presentation was given at a World Bank "Brown Bag" seminar on May 21, 2015.
Presentation by BASIS PI Travis Lybbert and Abbie Turiansky, along with Jean Claude O Fignole, Alix Percinthe, Sarah Belfort, Barry Shelly from OXFAM at the OXFAM Brown Bag series, February 22, 2016
DFID and Social Exclusion: the Use and Otherwise of a Concept in Internationa...BASIS AMA Innovation Lab
A presentation by Arjan de Haan and Andrew Shepherd from the 2009 BASIS Conference on "Escaping Poverty Traps: Connecting the Chronically Poor to the Economic Growth Agenda."
Flexible Response to Food Insecurity: Food Aid Programming and Impact in a New Era, a presentation by Chris Barrett from the 2009 Conference on "Escaping Poverty Traps: Connecting the Chronically Poor to the Economic Growth Agenda."
Access of Rural People Living in Poverty to Local and National Policy ProcessesBASIS AMA Innovation Lab
A presentation by Khalid El Harizi from the 2009 BASIS Conference on "Escaping Poverty Traps: Connecting the Chronically Poor to the Economic Growth Agenda."
At the Workshop on Innovations in Index Insurance to Promote Agricultural and Livestock Development in Ethiopia held on December 3rd, 2015 in Addis Ababa, Underwriting Manager of Nyala Insurance, Solomon Zegeye, presented the Insurer's perspective on an innovative inter-linked mincroinsurance and microcredit project
ASSESSMENT OF THE BURKINA FASO PROJECT: THE SAFE MINIMUM STANDARDS (SMS) METH...BASIS AMA Innovation Lab
Thomas Barré, Michael Carter & Quentin Stoeffler presented at the GAN Knowledge Sharing Forum: “Assessing value from index insurance products”, September 16, 2015.
A presentation by Julian May and Ingrid Woolard from the 2009 BASIS Conference on "Escaping Poverty Traps: Connecting the Chronically Poor to the Economic Growth Agenda."
The Dynamics of Building Political Support for Social Protection in Uganda: I...BASIS AMA Innovation Lab
A presentation by Charles Lwanga-Ntale from the 2009 BASIS Conference on "Escaping Poverty Traps: Connecting the Chronically Poor to the Economic Growth Agenda."
A presentation by Ruth Campbell from the 2009 BASIS Conference on "Escaping Poverty Traps: Connecting the Chronically Poor to the Economic Growth Agenda."
A presentation by Saurav Dev Bhatta from the 2009 BASIS Conference on "Escaping Poverty Traps: Connecting the Chronically Poor to the Economic Growth Agenda."
Parallel Realities: Exploring Poverty Dynamics using Mixed Methods in Rural B...BASIS AMA Innovation Lab
A presentation by Peter Davis and Bob Baulch from the 2009 BASIS Conference on "Escaping Poverty Traps: Connecting the Chronically Poor to the Economic Growth Agenda."
Dr. Michael Carter of UC Davis presented on the potential impacts of agricultural insurance on agricultural development & rural livelihoods at the Mobilizing a CGIAR Agricultural Insurance Community workshop in Washington, DC, 20-22 January 2014.
Webinar on Bundling agriculture index insurance with financial and non financ...Impact Insurance Facility
Bundling index insurance with other financial and non-financial services can help scale agricultural insurance. It provides incentives for farmers to purchase insurance and opportunities for other stakeholders. Index insurance has been successfully bundled with credit in places like Mali, increasing farmer investment and incomes. Insurers like ACRE bundle products with farmer groups, banks, and input suppliers. Appropriate services to bundle with include credit, seeds/fertilizers, and complementary insurance covers. Key considerations for effective bundling include pricing affordability, evaluating value for all stakeholders, and delivering bundled products that protect farmer incomes.
At the Workshop in Index Insurance to Promote Agriculture and Livestock Development held on December 3rd, 2015 in Addis Ababa, Ethiopia, Professor Michael Carter of UC Davis and Director of the Feed the Future BASIS Assets and Market Access Innovation Lab presented on the importance of creating an integrated social protection scheme, including an insurance component, to help the rural poor climb out of poverty especially as increasing climate shocks are expected
Climate Change, Social Protection & Insuranceessp2
Michael Carter from the University of California, Davis discusses using integrated social protection schemes with partial insurance subsidies to reduce vulnerability to climate change. Simulations show insurance subsidies lead to a more even draw on budgets and cheaper costs compared to just cash transfers. Insurance also leads to growth impacts by allowing asset transfers. However, if climate change risks become too severe, even targeted programs may lose efficacy and pricing risk becomes problematic, raising the need for public reinsurance solutions.
2021 tria small insurer study commentsJasonSchupp1
The Terrorism Risk Insurance Act requires the Federal Insurance Office (FIO) to conduct a study of the program’s impact on small insurers. We have suggested FIO focus its upcoming report on two heighten program risks facing small insurers:
• Compliance with the separate line-item disclosure of terrorism premium; and
• A disproportionate burden of post-event policyholder surcharges.
Presentation by Ulrich Hess, Senior Advisor, GIZ, at the Scaling up agricultural adaptation through insurance conference, on the sidelines of SBSTA. https://ccafs.cgiar.org/scaling-agricultural-adaptation-through-insurance
Protecting pastoralists against mortality losses due to severe forage scarcityILRI
Presented by Andrew Mude at the Workshop on The Future of Pastoralism in Africa: International Conference to Debate Research Findings and Policy Options, Addis Ababa, 21-23 March 2011.
This document describes a proposed microinsurance medical product for Jubilee Insurance Company of Kenya. It provides specifications for the product, including an inpatient cover for families with a general limit of 200,000 KES. Premiums would be 1,800 KES per member annually. The target market is low income Kenyans with credit facilities. Actuarial pricing techniques are used to estimate premiums, drawing on available data sources and adjusting assumptions to reflect the community characteristics. The premiums estimated using standard techniques are intended to be comparable to practical rates.
Microinsurance provides insurance protection to low-income individuals in India against risks such as death, illness, asset damage, and natural disasters. It began in India through non-profit organizations and hospitals but has expanded due to regulations requiring insurers to offer rural and social policies. While uptake is still limited, the potential market size is large as 90% of Indians lack insurance. Common microinsurance products in India include life, health, property, crop and disaster policies. These are offered through various models including partner-agent, full-service, provider-driven and community-based. Recently, IRDA proposed expanding microinsurance by allowing more agent types and diversifying products with savings and health features to better serve low-income communities.
Big data refers to the massively increasing volume, velocity and granularity of data sets that are being accessed and linked. The analysis of big data is transforming how insurers assess risk and price insurance. While this will benefit many through more accurate risk-based pricing, it may disadvantage some through unaffordable premiums. Government will need to address issues like privacy, discrimination, and protecting those facing uncontrollable risks.
Micro Insurance in India: A Gizmo to Vehicle Economic Development & Alleviate...iosrjce
The conditions for growth and the degree of inequality are two key factors that determine the extent of
poverty reduction from per capita economic growth. The lower the inequality levels the more positive effect
economic growth has on poverty levels. The link between economic development and human development is
dependent on the effectiveness of countries to convert income into better lives for all their citizens (UNDP
2000). The international development target of halving the proportion of people living in extreme poverty by
2015 can be attained by low-inequality countries without any change in their growth pattern and with lower
growth rates. However, high-inequality countries will only reach the target if growth is pro-poor and
significantly higher than in the past (twice that of low-inequality countries). If all countries belonged to the lowinequality
group then a forecasted growth of four per cent per annum would realize the target as early as 2005
(Hanmer et al 2000). So, this paper explores the idea of development and reduction of poverty, vulnerability and
inequality by micro insurance in India.
Managing Insurance Coverages & Costs – Your Hands Aren’t TiedCBIZ, Inc.
No surprise to anyone, the pandemic, civil unrest, economic uncertainty and an abundance of disastrous weather events influenced losses of over $1 billion in 2020, accelerating an already hardening insurance marketplace – one that is less friendly to insurance buyers. You can expect double digit increases at renewal – but your hands aren’t tied. In this article, CBIZ Insurance Services provides a 2021 Trends Alert and suggests how you can manage your risk profile to achieve your lowest cost of risk.
Big data refers to the massively increasing volume, velocity and granularity of data sets that are being accessed and linked. Insurers currently use data to determine pricing and identify relevant risk factors, but have varying levels of freedom in how they translate data into premiums. Increased analysis of big data has the potential to significantly refine risk pooling and pricing. This will allow insurers to better understand individual risks, provide more tailored products, and use price signals to encourage risk reduction. However, it may also lead to issues around affordability, privacy, and the risk profiles of some consumers becoming more transparent. Government will need to consider these implications and how to protect consumers.
Modeling and Estimation of loss function for crop Insurance under Indian scen...Anil k. Suthar
This is a slide show of my research paper in Crop Insurance in which we estimate the loss function associate with individual farmer. This loss function is useful for both aspect as insurer and insured. It helps to select in proper insurance policy for insured. It also help to insurer for future forecast and policy designing. Also useful in reserve creation formulation for insurer.
Modeling and Estimation of loss function for crop Insurance under Indian scen...Anil k. Suthar
This is a slide representation of my work in Crop insurance domain. I consider here crop insurance scheme for Indian scenario specially for Hanumangarh District of Rajasthan, India for 3 crop.
Joseph Alaban from RIMANSI Organization for Asia and the Pacific, Inc speaks about Microfinance and Micro-insurance. (Jan 30, PACAP Community Development Forum: Microfinance Amidst the Global Financial Crisis)
* Describe the factors leading to increased dependence on agricultural insurance
* Recognize the operational risks faced by farms due to falling prices and loss of insurance
* Explain the benefits of linking Farm Management System with crop insurance
* Identify the insurance selling opportunities
Similar to The Design and Implementation of Index Insurance Inititatives: Challenges for Policy (20)
Savings, Subsidies, and Technology Adoption: Field Experimental Evidence from...BASIS AMA Innovation Lab
1) The study examines the interaction between temporary input subsidies and formal savings programs on technology adoption in rural Mozambique.
2) It finds that the impact of subsidies on fertilizer use persists for two seasons in areas without savings programs, but disappears after one season in areas with basic or matched savings programs.
3) Savings programs led to substantial increases in formal savings balances, suggesting resources may have been diverted from fertilizer to savings in post-subsidy periods in savings areas. However, all treatment areas experienced similar consumption gains of around 8%.
BASIS Director, Michael Carter, presented on the topic of temporary subsidies, savings and the adoption of improved technologies at the USAID Ag Sector Forum in March of 2015.
A Public Reinsurance Facility for Uncertain Risk Layers: A Modest Proposal?BASIS AMA Innovation Lab
This document discusses the potential for a public reinsurance facility to address the private sector's excess sensitivity to tail risk and uncertainty about tail risk. It presents three alternative models for public-private partnerships in reinsurance: Model A subsidies the full private contract to lower prices, Model B has the public sector reinsure just the severe risk layer at fair price while the private sector handles moderate risk, and Model C is similar to B but spends the subsidy on lowering the severe risk layer price. The document argues that a public entity could more neutrally price uncertain tail risk, crowding in private interest for less severe layers and limiting their liability, acting as a transitional strategy as risk knowledge grows over time.
Financial Instruments for Managing Risk and Food Insecurity in the Arid Pasto...BASIS AMA Innovation Lab
A presentation by BASIS Director, Michael Carter, from the Climate Smart Agriculture Workshop: Building Resilience to Climate Change in Milan, Italy in August of 2015.
Social Protection in the Face of Climate Change: Targeting Principles and Fin...BASIS AMA Innovation Lab
BASIS Director Michael Carter and BASIS researcher, Sarah Janzen (Professor, Montana State University), presented in December 2015 on the importance of social protection mechanisms in the face of climate change.
Behavioral Economics and the Design of Agricultural Index Insurance in Develo...BASIS AMA Innovation Lab
UC Davis Professor Michael Carter presented, "Behavioral Economics and the Design of Agricultural Index Insurance in Developing Countries" at the 2014 International Agricultural Risk, Finance, and Insurance Conference (IARFIC).
Escaping Poverty Traps: Connecting the Chronically Poor to Economic GrowthBASIS AMA Innovation Lab
The agenda for the BASIS conference on Escaping Poverty Traps: Connecting the Chronically Poor to Economic Growth, held in Washington D.C. on February 26-27, 2009.
Former Senator Richard G. Lugar's remarks for the 2009 BASIS Conference on "Escaping Poverty Traps: Connecting the Chronically Poor to the Economic Growth Agenda."
A presentation by Shanta Devarajan from the 2009 BASIS Conference on "Escaping Poverty Traps: Connecting the Chronically Poor to the Economic Growth Agenda."
A presentation by Wenefrida Widyanti, Asep Suryahadi, Sudarno Sumarto, and Athia Yumna from the 2009 BASIS Conference on "Escaping Poverty Traps: Connecting the Chronically Poor to the Economic Growth Agenda."
The document summarizes a study examining whether there is evidence of a "culture of dependency" among social grant recipients in South Africa. The study found that grant recipients highly valued work and the unemployed were strongly motivated to find jobs. However, high unemployment was primarily due to lack of job opportunities rather than lack of motivation to work. The study concluded there was no evidence that grants caused dependency on welfare or reduced incentives to work.
For Protection and Promotion: The Design and Implementation of Effective Safe...BASIS AMA Innovation Lab
A presentation by Margaret Grosh, Carlo del Ninno, Emil Tesliuc, and Azedine Ouerghi from the 2009 BASIS Conference on "Escaping Poverty Traps: Connecting the Chronically Poor to the Economic Growth Agenda."
Assisting the Poorest in Bangladesh: Learning from BRAC's Targeting the Ultra...BASIS AMA Innovation Lab
A presentation by David Hulme from the 2009 BASIS Conference on "Escaping Poverty Traps: Connecting the Chronically Poor to the Economic Growth Agenda."
Poverty and Landownership: Quasi-experimental Evidence from South AfricaBASIS AMA Innovation Lab
A presentation by Michael Carter, Klaus Deininger and Malcom Keswell from the 2009 BASIS Conference on "Escaping Poverty Traps: Connecting the Chronically Poor to the Economic Growth Agenda."
Preliminary findings _OECD field visits to ten regions in the TSI EU mining r...OECDregions
Preliminary findings from OECD field visits for the project: Enhancing EU Mining Regional Ecosystems to Support the Green Transition and Secure Mineral Raw Materials Supply.
Contributi dei parlamentari del PD - Contributi L. 3/2019Partito democratico
DI SEGUITO SONO PUBBLICATI, AI SENSI DELL'ART. 11 DELLA LEGGE N. 3/2019, GLI IMPORTI RICEVUTI DALL'ENTRATA IN VIGORE DELLA SUDDETTA NORMA (31/01/2019) E FINO AL MESE SOLARE ANTECEDENTE QUELLO DELLA PUBBLICAZIONE SUL PRESENTE SITO
Food safety, prepare for the unexpected - So what can be done in order to be ready to address food safety, food Consumers, food producers and manufacturers, food transporters, food businesses, food retailers can ...
Combined Illegal, Unregulated and Unreported (IUU) Vessel List.Christina Parmionova
The best available, up-to-date information on all fishing and related vessels that appear on the illegal, unregulated, and unreported (IUU) fishing vessel lists published by Regional Fisheries Management Organisations (RFMOs) and related organisations. The aim of the site is to improve the effectiveness of the original IUU lists as a tool for a wide variety of stakeholders to better understand and combat illegal fishing and broader fisheries crime.
To date, the following regional organisations maintain or share lists of vessels that have been found to carry out or support IUU fishing within their own or adjacent convention areas and/or species of competence:
Commission for the Conservation of Antarctic Marine Living Resources (CCAMLR)
Commission for the Conservation of Southern Bluefin Tuna (CCSBT)
General Fisheries Commission for the Mediterranean (GFCM)
Inter-American Tropical Tuna Commission (IATTC)
International Commission for the Conservation of Atlantic Tunas (ICCAT)
Indian Ocean Tuna Commission (IOTC)
Northwest Atlantic Fisheries Organisation (NAFO)
North East Atlantic Fisheries Commission (NEAFC)
North Pacific Fisheries Commission (NPFC)
South East Atlantic Fisheries Organisation (SEAFO)
South Pacific Regional Fisheries Management Organisation (SPRFMO)
Southern Indian Ocean Fisheries Agreement (SIOFA)
Western and Central Pacific Fisheries Commission (WCPFC)
The Combined IUU Fishing Vessel List merges all these sources into one list that provides a single reference point to identify whether a vessel is currently IUU listed. Vessels that have been IUU listed in the past and subsequently delisted (for example because of a change in ownership, or because the vessel is no longer in service) are also retained on the site, so that the site contains a full historic record of IUU listed fishing vessels.
Unlike the IUU lists published on individual RFMO websites, which may update vessel details infrequently or not at all, the Combined IUU Fishing Vessel List is kept up to date with the best available information regarding changes to vessel identity, flag state, ownership, location, and operations.
Jennifer Schaus and Associates hosts a complimentary webinar series on The FAR in 2024. Join the webinars on Wednesdays and Fridays at noon, eastern.
Recordings are on YouTube and the company website.
https://www.youtube.com/@jenniferschaus/videos
2024: The FAR - Federal Acquisition Regulations, Part 39
The Design and Implementation of Index Insurance Inititatives: Challenges for Policy
1. The design and implementation of index insurance initiatives for
agricultural development in Africa:
3 Challenges for Policy
Michael R Carter
University of California, Davis & NBER
BASIS I4 Index Insurance Innovation Initiative
http://basis.ucdavis.edu
Innovations in Index Insurance to
Promote Agricultural and Livestock Development
Addis Ababa
December 2, 2015
M.R. Carter Index Insurance Design & Implementation
2. What Can Index Insurance Do?
Know that risk is directly costly
Makes Households Poor when it leads them to adopt less risky
activities, but lower returning activities
Keeps Households Poor when it leads them accumulate
unproductive ’buffer’ assets
Deepens capital constraints also as
Cuts off self-finance by holding of ’unproductive’ savings
Discourages external finance (credit), especially when risk is
correlated
Reducing risk via insurance should address all these problems
Note also that when twined with technology adoption,
insurance becomes relatively inexpensive
But can insurance really work for low wealth agricultural &
pastoralist households?
M.R. Carter Index Insurance Design & Implementation
3. What Can Index Insurance Do?
Maize producers in Ghana invest more when insured
Randomly offered some farmers insurance at variable prices
Other farmers offered a capital grant for purchasing inputs
Found that farmers offered insurance:
Expand area cultivated by some 15%
Increase input use by 40%
Capital grants by themselves have little impact
Source: Karlan et al. (2014). “Agricultural Decisions after Relaxing Risk & Credit
Constraints,” Quarterly J of Econ.
M.R. Carter Index Insurance Design & Implementation
4. What Can Index Insurance Do?
Cotton producers in Mali invest more when insured
Designed a dual-scale index contract with radically lower basis
risk
Insurance offered to a random subset of villages–find that in
insured villages:
Area planted to cotton & input use increased by 45%
Output & income increased as expected (result not statistically
significant)
Currently scaling up in Burkina Faso
Source: Elabed & Carter (2014) “Ex-ante Impacts of Agricultural Insurance: Evidence
from a Field Experiment in Mali,” Working Paper
M.R. Carter Index Insurance Design & Implementation
5. What Can Index Insurance Do?
Kenyan pastoralists reduce dependence on costly coping strategies
IBLI Insurance had payout in October 2011 after a prolonged
drought that sparked 30-40% livestock mortality
October 2011 survey asked insured and uninsured households
how they had been coping with the drought prior to the
payout/survey & how they anticipated coping after the
payout/survey
M.R. Carter Index Insurance Design & Implementation
6. What Can Index Insurance Do?
Kenyan pastoralists reduce dependence on costly coping strategies
Initially better off households:
Before Payout: No impact on consumption reduction nor on
asset sales prior to payout
After Payout: 65 %-point reduction in asset sales after payout
Initially worse off households:
Before Payout: 30 %-point reduction in “meals reduced” prior
to payout; No impact on asset sales
After Payout: 43 %-point reduction in “meals reduced” after
payout; No impact on asset sales
Source: Janzen & Carter (2014) “After the Drought: The Impact of Microinsurance
on Consumption Smoothing and Asset Protection,” NBER Working Paper No. 19702.M.R. Carter Index Insurance Design & Implementation
7. Policy Challenges for Index Insurance
Achieving these social protection and growth impacts faces key
policy challenges:
1 Cost-effective, integrated social protection system
Response: Public provision of minimum insurance protection
for vulnerable families
2 Quality contracts that do not fail households when losses occur
Response: Public certification of index insurance quality
3 Competitive insurance (risk) pricing
Response: Backstop public reinsurance facility
Let’s look at each of these
M.R. Carter Index Insurance Design & Implementation
8. Challenge 1
Cost-effective, integrated social protection system
Cash transfers, food aid & other forms of social protection
target those who are poor and have perhaps become
economically unviable/stuck
Clear financial logic to protecting the vulnerable so that they
do not fall into destitution and become transfer eligible
And yet public funds devoted to the vulnerable diverts
resources from the already poor
While the ability of the vulnerable to pay for their own
insurance is limited, analysis suggests that some public funding
of insurance for the vulnerable can be cost effective
M.R. Carter Index Insurance Design & Implementation
9. Challenge 1
Consider 2 policy scenarios:
1 Reactive cash transfer scenario in which government only
reacts to indigence & transfers resources to the indigent
2 Integrated social protection scenario in which government also
provides partial insurance subsidy to vulnerable households
Policy 2 results in lower rates & depths of chronic poverty & costs
no more than policy 1
0 5 10 15 20 25 30 35 40 45 50
0
10
20
30
40
50
60
70
80
90
100
Consumption−basedPovertyHeadcount
Time
Autarky
Insurance (Market Price)
Insurance (Targeted Subsidy)
0 5 10 15 20 25 30 35 40 45 50
0
2
4
6
8
10
12
Consumption−basedPovertyGap
Time
Autarky
Insurance (Market Price)
Insurance (Targeted Subsidy)
source: Janzen & Carter (2015), “The impact of insurance markets on chronicM.R. Carter Index Insurance Design & Implementation
10. Challenge 1
Cost-effective, integrated social protection system
In the policy simulation, insurance subsidy works well because
it harnesses two forces:
Vulnerability Reduction Effect: As in Kenya IBLI study,
protects assets so families do not collapse into indigence
Investment Incentive Effect: As in Ghana & Mali studies,
enhances investment incentives so families can prudentially
invest & create a pathway from poverty
Together these forces bring the dramatic drops in chronic
poverty & increases in self-reliance
Key features of this approach
Public purchase (or partial purchase) helps make the market
(& instills confidence)
Unlike ad hoc schemes in some South American countries,
individuals can buy insurance beyond the publicly-funded
margin, enhancing investment incentives & growth
M.R. Carter Index Insurance Design & Implementation
11. Challenge 2
Quality contracts that do not fail households
Index insurance has advantages for small-scale farming: Cheap
to administer; avoids moral hazard & adverse selection
But, its achilles heal is that it does not cover all losses:
Designing quality contracts is a non-trivial problem:
M.R. Carter Index Insurance Design & Implementation
12. Challenge 2
Quality contracts that do not fail households
The problem is far from trivial as the following analysis of the
relationship between average losses and indemnity payments
under rainfall insurance in India shows:
Clarke, D. et al. (2012). “Weather Based Crop Insurance in India.”
Such contract failures can also hurt lenders & destroy trust &
confidence in insurance companies (and government)
Consider today new ways to reduce the magnitude of
uncovered risks (A+B)
M.R. Carter Index Insurance Design & Implementation
13. Challenge 2
Quality contracts that do not fail households
Devices to reduce the uncovered ’design risk’ B:
Improved satellite predictors of biomass growth
Fail-safe audit rules that are implemented when index fails to
properly predict common losses
Devices to reduce uncovered ’idiosyncratic risk’ A:
Linking formal with informal insurance
Use dual trigger index to allow smaller geographic scale for
core index
Let’s look at devices to manage design risk using a study from
Tanzania
M.R. Carter Index Insurance Design & Implementation
14. Challenge 2
Measuring insurance quality for rice farmers in Northern Tanzania
M.R. Carter Index Insurance Design & Implementation
15. Challenge 2
Village-level Area Yield vs. Optimized Satellite-based Contract
For each small area (“village”), we collected 10 years of
retrospective data on yields
Best satellite predictor of village yields proved to be based on
’Gross Primary Production’ (based on EVI, FPAR & LAI)
Let’s compare this (cheap to administer) satellite based index
with an (expensive) village-level area yield contract:
50010001500200025003000
Predictedyield(kg/acre)
500 1000 1500 2000 2500
Actual yield (kg/acre)
Predicted vs. actual area yields in Makindube
M.R. Carter Index Insurance Design & Implementation
16. Challenge 2
Will I get paid probability measure
Consider a contract that pays anytime either measured or
satellite predicted village yields fall below average:
0.1.2.3.4.5.6.7.8.91
Probabilityofpayout
0 .2 .4 .6 .8 1 1.2 1.4
Plot-level yield (% of historic mean)
95% Confidence Interval Satellite Index Contract
Area-Yield Contract
Probability of receiving a payout by zone-level yields
M.R. Carter Index Insurance Design & Implementation
17. Challenge 2
How much will I get paid measure
M.R. Carter Index Insurance Design & Implementation
18. Challenge 2
Reservation Price Quality Measure
Actuarially fair prices for these contracts are 130 kg of rice
per-hectare insured
Unrealistically, assuming no local risk sharing
Minimalist Quality Standard: Reservation Price > Market
Price of Contract
M.R. Carter Index Insurance Design & Implementation
19. Challenge 2
Can We Do Better with an Audit Rule?
Can see that the satellite does well separating good from bad,
but has trouble distinguishing quite bad from slightly bad
What if we augmented satellite index with an audit on demand
scheme:
Agreed upon crop cut methodology at village level
Incentive compatible penalties to prevent unnecessary audits
M.R. Carter Index Insurance Design & Implementation
20. Challenge 2
Can We Do Better with an Audit Rule?
Assume that audits only requested when predicted yields are
5% below actual village area yields
17% of the time audits will take place
Shadow price will be close to pure area yield insurance
Data collection costs will only be 17% of those under area
yield contract
M.R. Carter Index Insurance Design & Implementation
21. Challenge 2
Work here suggests a safe minimum quality standard:
Reservation Price > Market Price
Note that even if insurance is subsidized, beneficiaries would
be better if simply given the subsidy rather than given cheap
insurance that approximates a lottery ticket
Issues of quality assurance are very important:
Without quality certification standards, markets will supply low
quality contracts predominate
Much to learn about how to implement those standards, but
also how to design contracts that meet those standards
(design failure in Nepal)
M.R. Carter Index Insurance Design & Implementation
22. Challenge 3
Competitive Pricing
Some jargon:
The actuarially fair price (or pure premium) of an insurance
contract is equal to the expected payouts under the contract
To cover administration costs (which should be low for index
insurance) & cost of capital, insurance companies have to
mark-up or load the cost of insurance (in US crop insurance,
the mark-up results in a price that is between 125% and 130%
of the ’AFP’)
A number of index insurance pilots have faced prices of
175-200% of AFP–why?
Thin markets, small project size & lack of competition/interest
Sparse data and uncertainty-penalized pricing
It is clear that prices at this level are non-starters for low
wealth households
What is to be done?
M.R. Carter Index Insurance Design & Implementation
23. Challenge 3
Competitive Pricing
With generous support from various donors, the IFC’s Global
Index Insurance Facility (GIIF) has to date provided an across
the board subsidy on prices set by private industry to various
projects, including IBLI
The USAID-funded Global Action Network on Index Insurance,
collaboration with the ILO & I4 is now in conversation with
IFC & the World Bank about alternative ways to lower price
Let a public sector entity (not allergic to uncertainty) carry the
layers of risk that are most worrisome to the private sector
Let a public sector entity serve a broker role, transparently
pricing and putting out to bid contracts with certified risk
estimates (perhaps bundling together multiple projects in the
spirit of the African Risk Capacity)
This same entity could also certify quality
Note that creating a minimum demand based on public
purchase of basic insurance coverage could further help bring
down prices
M.R. Carter Index Insurance Design & Implementation
24. In Conclusion
While we are beginning to see that index insurance can realize
its promise to fundamentally alter income growth & poverty
dynamics, it is no magic bullet
Substantial challenges remain to be resolved if index insurance
is to fully reach its promise
Kenya’s new KLIP/HSNP+ program is promising, not only
because it is well-designed, but also because it will likely help
us answer many of the key challenges about index insurance
that we have discussed today
Forward!
M.R. Carter Index Insurance Design & Implementation