As part of the global agenda of insuring for sustainable development, the Impact Insurance Facility (www.impactinsurance.org) and the PSI Initiative (www.unepfi.org/psi) are organizing a webinar series with the theme, “Making inclusive insurance work”. The fifth webinar had the topic "Agriculture and climate risks" and was held on 25 April 2017. Speakers: Samson Ajibola (Leadway), Marcel Stäheli (CelsiusPro) and Manoj Yadav (RIICE/GIZ). Moderator: Miguel Solana (ILO's Impact Insurance Facility).

1. Making inclusive insurance work:
Agriculture and climate risks

2. The UNEP-PSI and ILO webinar series
2
Making inclusive insurance work - A webinar series by the International
Labour Organization’s Impact Insurance Facility and UN Environment’s
Principles for Sustainable Insurance (PSI) Initiative
As part of the global agenda of insuring for sustainable development, the
Impact Insurance Facility (www.impactinsurance.org) and the PSI Initiative
(www.unepfi.org/psi) are organizing a seven-part webinar series with the
theme, “Making inclusive insurance work”.
Today’s session will focus on agriculture and climate risks

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4. Making inclusive insurance work:
Agriculture and climate risks
4
Presenter:
Manoj Yadav
Project Advisor
GIZ
Facilitator:
Miguel Solana
Senior Technical Officer,
Impact Insurance Facility
4
Presenter:
Marcel Stäheli
Senior Parametric
Product Manager
CelsiusPro
Presenter:
Samson Ajibola
Head, Agricultural and
Micro Insurance
Leadway

5. “Failure of climate-change mitigation and adaptation” as the
greatest risk facing the world over the next 10 years
According to the WEF 2016 Global Risks Report
5
Impact
Likelihood

6. Agricultural and climate risks in the
context of the SDGs
6

7. What is the biggest challenge for the insurance
industry to develop solutions for agricultural
and climate risks
1. Data availability and changing patterns of events
2. Understanding of insurance integrated to other
adaptation strategies
3. Delivery mechanisms to reach out to the
population
Audience poll 1
7

8. RISKS ASSOCIATED WITH
AGRIBUSINESS AND
INVESTMENTS
Samson Ajibola, Head, Agricultural and Micro Insurance
Leadway

9. RISKS ASSOCIATED WITH AGRIBUSINESS AND INVESTMENTS
Production Risks:
• Agricultural Production implies expected
outcome or yield from cultivated crops or
animals reared.
• Any production related activity or event
that has a range of possible outcomes is a
production risk
• Sources of production risks includes:
weather, climate change, pests, diseases,
technology, genetics, machinery efficiency,
quality of inputs, fire, windstorm,
lightning, theft, encroachment
.

10. RISKS ASSOCIATED WITH AGRIBUSINESS AND INVESTMENTS
Financial Risks:
4 Basic Components of Financial Risks:
 The cost and availability of capital;
 The ability to meet cash flow needs in a timely
manner;
 The ability to maintain and grow equity;
 The ability to absorb short-term financial
shocks.
Cash flow is especially important because of the
variety of on-going obligations such as inputs
costs, cash lease payments, tax payments, debt
repayment, family expenses, and staff salary
.

11. RISKS ASSOCIATED WITH AGRIBUSINESS AND INVESTMENTS
Marketing Risk:
 Marketing is transforming production
activities into financial success.
 Agriculture operates directly or indirectly in
a global market. Unanticipated forces
anywhere in the world, such as weather or
government action, can lead to dramatic
changes in output and input prices.
 Demand versus Supply = Price
 Marketing risk is any market related activity
or event that leads to the variability of
prices farmers receive for their products or
pay for production inputs or services.
 Access to markets is also a marketing risk.
.

12. RISKS ASSOCIATED WITH AGRIBUSINESS AND INVESTMENTS
Human Risks:
 People are both a source of business risk and an
important part of the strategy for dealing with
risk.
 At its core, human risk management is the
ability to keep all people who are involved in
the business safe, satisfied and productive.
 Human risk can be summarized into four main
categories:
 Human Health and Well Being;
 Family and Business Relationship;
 Employee Management;
 Transition Planning.
.

13. RISK ASSOCIATED WITH AGRIBUSINESS AND INVESTMENTS
Legal Risks
The legal issue most commonly associated with
agriculture fall into 5 broad categories:
Contractual Arrangements;
Business Organization;
Laws and Regulations;
Tort Liability;
Public Policies and Attitudes.
.

14.  NAIS was established in 1987 to mitigate risks faced by farmers and thereby promote the growth of
agricultural sector.
 NAIC was established by NAIC Act of 1993 as the only underwriter of Agricultural Risks
 Up to 2012, the scheme covers only 500,000 farmers which is far from achieving it set goals
To expand Agricultural Sector there is need for involvement of private commercial insurance companies who:
1. Can do business as business on contractual and commercial basis that would give confidence and guarantee
to the institutional lenders to agribusiness value chains
2. Will consider the small, middle and large scale farmers and their families
3. Have capacity to bear the risks and pay claims promptly without any bureaucracy
4. Provide insurance that transcend from farm to the family health and wealth
5. Have adequate risk management mechanisms and professional advisory services.
The Leadway Agricultural Insurance was carefully developed to address these needs.
AGRICULTURAL INSURANCE IN NIGERIA – An Overview
.

15. Kenya Livestock Insurance
Program
16
Marcel Stäheli, Senior Parametric Product Manager
CelsiusPro

16. CelsiusPro AG
Seebahnstrasse 85, CH-8003 Zürich, t: +41 44 205 9910 f: +41 44 205 9919, info@celsiuspro.com
Video presentation
17
Go to
www.youtube.com/watch?v=q4asbUmd8w0
to watch the three-minute video

17. CelsiusPro AG
Seebahnstrasse 85, CH-8003 Zürich, t: +41 44 205 9910 f: +41 44 205 9919, info@celsiuspro.com
Kenya Livestock Insurance Program (KLIP)
18
National Agricultural Insurance Scheme – Kenya
• The Ministry of Agriculture Livestock & Fisheries in
Kenya plans to use insurance to cushion Kenya’s
livestock keeping communities against drought
related loss of livestock;
• KLIP has been developed with support from World
Bank, ILRI1), and public and private sector
stakeholders;
• It is a macro-level insurance scheme for asset
protection;
• Forage availability as determined by satellite data
will trigger payout;
• National government intends to provide (as a start)
100% premium support for 5 tropical livestock units
(TLU) belonging to vulnerable pastoralists;
• The insurer and beneficiaries will make
arrangements for top up and voluntary cover via
IBLI2) program;
• The insuring company will make payouts directly to
the accounts/mobile payment systems of the
beneficiaries when there is a trigger
1)International Livestock Research Insitute
2)Index Based Livestock Insurance
CelsiusPro has set-up a web-based tool to extract and access NDVI data
Login Page to CelsiuPro’s web-based tool

18. CelsiusPro AG
Seebahnstrasse 85, CH-8003 Zürich, t: +41 44 205 9910 f: +41 44 205 9919, info@celsiuspro.com
Kenya and Agriculture
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Huge Livestock Wealth
14 target ASAL pastoral counties have
 9.140 M cattle= 52.3%
 13.462M sheep= 78.6%
 21.024M goats= 75.8%
 2.962M camels= 99.7%
Map of Kenya showing arid and
semi arid districts
Source: Presentation: Kenya Livestock Insurance
Program by Vincent Githinji (MALF Kenya) 09.06.2015
Program Launch
• 1-Oct-2015
• 2 counties with 26 insurance units
• Cover Period:
 Short rain Oct-Feb
 Long rain Mar-Sep
• 5,012 farmers covered 1st Cover Period
Program Expansion
• 1-Oct-2016
• 6 counties with 70 insurance units
• Severe drought during short rain Oct-Feb
2016/17
• 88% or 62 of insurance units got triggered
where losses paid to herders in feeding
over 50,000 animals
• 12,064 farmers covered 2nd Cover Period

19. CelsiusPro AG
Seebahnstrasse 85, CH-8003 Zürich, t: +41 44 205 9910 f: +41 44 205 9919, info@celsiuspro.com
Technological aspects of KILP
20
CelsiusPro is the calculation agent for KILP and therefore responsible of calculating the
NDVI values per Insurance unit used to calculate the risk and the payouts.
Below a screen shot for the selection of the Insurance Units.
Outlined the
Insurance Units of
the first 2 counties
for the KLIP .
It is planned to
further extend the
regional scope to
cover as many as
14 counties.

20. CelsiusPro AG
Seebahnstrasse 85, CH-8003 Zürich, t: +41 44 205 9910 f: +41 44 205 9919, info@celsiuspro.com
County Season Progress and Past Conditions
21

21. CelsiusPro AG
Seebahnstrasse 85, CH-8003 Zürich, t: +41 44 205 9910 f: +41 44 205 9919, info@celsiuspro.com
Insurance Unit Season Progress
22

22. CelsiusPro AG
Seebahnstrasse 85, CH-8003 Zürich, t: +41 44 205 9910 f: +41 44 205 9919, info@celsiuspro.com
Payout Report
23
The official payout
reports are generated at
the end of the season.

23. CelsiusPro AG
Seebahnstrasse 85, CH-8003 Zürich, t: +41 44 205 9910 f: +41 44 205 9919, info@celsiuspro.com
Questions
24

24. RIICE: Remote Sensing-
based Information and
Insurance for Crops in
Emerging Economy
25
Manoj Yadav, Project Advisor
GIZ

25. Remote Sensing-based Information and Insurance for Crops in Emerging Economy
Application of Remote Sensing Technology
in Crop Insurance
Experience from RIICE project in Tamil Nadu, India

26. REMOTE SENSING-BASED INFORMATION AND INSURANCE FOR CROPS IN EMERGING ECONOMIES
Using remote sensing information in Crop Insurance
Bi-weekly information on crop growth
status, derived by European and
Indian cloud-free satellite data
Observation on delays in rice growing helps to
guide decision on Preventive Sowing/ On
Account Payment Cover
End-of-season yield estimation at village level can
guide Crop Cutting Experiments
(“Smart sampling”)

27. REMOTE SENSING-BASED INFORMATION AND INSURANCE FOR CROPS IN EMERGING ECONOMIES
Large scale, high
resolution SAR-
RS of rice areas
Crop models
adjusted by
remote sensing
Smartphone
based rapid data
collection
Cloud platforms
scalable, reliable
and timely+ + +
All remote sensing data stored,
processed and analyzed on the cloud.
All field data collected by mobile phone,
sent to the cloud over mobile or Wi-Fi
network.
Timely, detailed, and accurate information
made available to the users.
Turning the value chain of crop information digital
Leveraging new technologies

28. Information delivered through remote sensing analysis:
• How much area was planted this season in each
district/block/village?
• What was the yield in each district/block/village?
• Was production more or less than last year?
• Was the harvest early or late?
• Adverse climatic conditions: flood or drought?
– Where and how much area was affected?
– How much yield was lost in such areas?
REMOTE SENSING-BASED INFORMATION AND INSURANCE FOR CROPS IN EMERGING ECONOMIES

29. REMOTE SENSING-BASED INFORMATION AND INSURANCE FOR CROPS IN EMERGING ECONOMIES
Where?
Rice area detection and acreage estimation at village level
Rice Map of Kodavasal Block,
Tiruvarur District
Rice Map of Vayalore Village,
Kodavasal Block, Tiruvarur District

30. REMOTE SENSING-BASED INFORMATION AND INSURANCE FOR CROPS IN EMERGING ECONOMIES
Rice Area in Navalur Kuttapattu village, Manikandam Block, Trichy District
2016-172015-16

31. REMOTE SENSING-BASED INFORMATION AND INSURANCE FOR CROPS IN EMERGING ECONOMIES
When? Start of season
Cauvery delta region,
Tamil Nadu

32. REMOTE SENSING-BASED INFORMATION AND INSURANCE FOR CROPS IN EMERGING ECONOMIES
How much?
Yield estimation at village level
Rice Yield Map of Vayalore Village of Kodavasal Block, Tiruvarur District, Tamil Nadu

33. REMOTE SENSING-BASED INFORMATION AND INSURANCE FOR CROPS IN EMERGING ECONOMIES
Application of RIICE technology in Crop Insurance in India
Pre Vegetative
Phase
Vegetative &
Reproduction
Phase
Maturity Phase
Prevented/Failed
Sowing
On Account
Payment
CCE Based
Compensation
Start of Season &
Early Rice Area
Maps
Mid Season Yield
Forecast for
Expected Yield
End of the Season
Yield Estimates &
Smart CCE
Sampling
Crop
Growth
Stage
VillagelevelImplementation
Crop
Insurance
Scheme
Features
RIICE Based
Crop
Insurance
Solutions

34. REMOTE SENSING-BASED INFORMATION AND INSURANCE FOR CROPS IN EMERGING ECONOMIES
Information delivered by RIICE
and its national partner Tamil
Nadu University, helped relief
efforts by distributing seeds in
Tamil Nadu flood affected areas,
after satellite data had been
delivered to the state level
emergency authorities.
2015 Tamil Nadu flood resulted in loss of rice area being lost
Case Study: Disaster Risk Assessment

35. REMOTE SENSING-BASED INFORMATION AND INSURANCE FOR CROPS IN EMERGING ECONOMIES
Role of RIICE Technology in Crop Insurance in India
Area of improvement RIICE
In-season crop area monitoring & yield estimation 
Determination of progress of area sown/emerged 
Continuous monitoring of crop health 
Efficient identification of homogenous/stress areas 
Disaster mapping and loss assessment (Flood & Drought) 
Prevented sowing cover and on-account payment 
Improved targeting/ Smart Sampling of Crop Cutting
Experiments 

36. REMOTE SENSING-BASED INFORMATION AND INSURANCE FOR CROPS IN EMERGING ECONOMIES
Mar-Apr
2016
•RIICE project presented to the, Dept. of Agriculture, Govt. of Tami Nadu
•Dept. of Agriculture recommends RIICE project to be piloted in the 2016 season
July 2016
•RIICE project mentioned as one of the pre-conditions for selection of insurance companies in
the Tender Process
Nov 2016
•RIICE project approved by Committee on Crop Insurance for a state wide pilot
•RIICE-team observes late start of season using satellite technology, shares information
Jan-Mar
2017
•Department of Agriculture analyses satellite information on delayed start of Samba season
•Stakeholders consider RIICE based information for insurance pay-outs
•RIICE Pilot extended in 2017 cropping season
RIICE Milestones in Tamil Nadu, India

37. REMOTE SENSING-BASED INFORMATION AND INSURANCE FOR CROPS IN EMERGING ECONOMIES
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Summary of experiences and challenges ahead
RIICE Project
Tamil Nadu
2016-17
Products Problem
Solving
Contribution to
Crop Insurance
Challanges &
Future Focus
Areas
• Start of season area maps
• Village wise rice area
• Mid season expected yield
• End of Season yield maps
• Village level yield estimate
• Disaster Risk Assessment
• Field validated products
• World class technology &
expertise
• Timely, scientific transparent
& efficient processes
• Insurance ready solutions
• RIICE Insurance pilot by
State Govt.
• Area discrepncy
• Rapid loss assessment
• In season monitoring
• Village level crop statistics
• Mid season & End of
season yield assessment
• Timely compenssation to
farmers
• Detailing PMFBYfeatures like
prevented sowing, on a/c
payment etc
• Developing a Smart CCE
sampling methodology in
cooperation with DEA
• Availability of quality village
level boundary maps

38. Thank You
Manoj Yadav
RIICE Project Advisor, GIZ, New Delhi
Email: manoj.yadav@giz.de
Mobile: +91-9971784600

39. Where can technology best leveraged for
insurance:
1. Data and information gathering
2. Reaching out to clients and improving the
experience of insurance
3. Improve processes to reduce costs
Audience poll 2
40

40. Making inclusive insurance work:
Agriculture and climate risks
41
Presenter:
Manoj Yadav
Project Advisor
GIZ
Facilitator:
Miguel Solana
Senior Technical Officer,
Impact Insurance Facility
41
Presenter:
Marcel Stäheli
Senior Parametric
Product Manager
CelsiusPro
Presenter:
Samson Ajibola
Head, Agricultural and
Micro Insurance
Leadway
Q&A

41. The way forward
42
Importance to understand all the household
risk dimensions that climate change is
triggering
Integration to adaptation mechanisms will be
essential for insurance to be sustainable
Leverage technology solutions and foster
partnerships

42. Our next webinars
43
Making inclusive insurance work - A webinar series by the International
Labour Organization’s Impact Insurance Facility and UN Environment’s
Principles for Sustainable Insurance (PSI) Initiative
The topics and schedule of the next webinars are as follows:
6. Health – Part 2 – date TBA
7. Insurance regulation – date TBA