10th Consultative Forum on the topic of “Scaling up agricultural index insurance in Africa: Building disaster resilience of smallholder farmers”
See below for the briefing note, recordings, presentations, and photos
This event gathered over 90 high-ranking representatives from the insurance industry, supervisory authorities and the public sector from 29 different countries.
“We are seeing promising developments that could enable index based insurance to really take off”, stated Jonathan Dixon, Chair of the International Association of Insurance Supervisors (IAIS) Regional Committee for Sub-Saharan Africa. “These include innovations in business models, advancements in technology, the development of proportionate regulations in areas such as distribution which is critical in agricultural insurance given its long value chain, and growing support from other policymakers with pilots being subsidised and supported.”
Hannah Grant, Head of the Secretariat for the Access to Insurance Initiative explained that the different role of the insurance supervisor in micro, meso and macro agricultural insurance programmes needs to be considered when drafting index insurance regulations. “At the micro and meso levels individual policyholders are more vulnerable to abuse and the potential for reputational damage for the sector is much higher” she explained. This is one of the issues being discussed by the IAIS drafting group on index based insurance which is currently working on a supervisory guidance note on the topic.
The event also included a workshop on “preparing and assessing an agricultural index product proposal”. Practical examples to help inform the discussion were provided by industry practitioners as well as the Kenyan Insurance Regulatory Authority. The workshop focused on achieving sustainability, ensuring client value and managing risk in the product design, distribution and marketing of agricultural index insurance.
Discussions centred on striking the right balance between small frequent pay-outs, which contribute to positive consumer perceptions and create trust, and affordability of premiums and sustainability of programmes. In addition, the need for greater regulatory flexibility with regards to allowing client aggregators, such as agricultural input providers, to distribute the product came to the forefront. Finally, there is a need for better data collection and more research on the most appropriate indicators to measure risk, viability and client value.
“Of particular interest were discussions around the bundling of index insurance with other products of value to the farmer, the development of a multi-peril index insurance that includes agricultural and medical insurance, as well as the offering of insurance to multiple players along the value chain, for example for the agricultural input providers as well as the farmers”, said Annette Houtekamer-van Dam, Microinsurance Expert at the Microinsurance Network. “The Forum highlighted that one of the key success factors for scaling up agricultural insurance is the establishment of strategic partnerships, where all stakeholders in the value chain get value from their involvement” she concluded.
The event was co-organised by The African Insurance Organisation, the International Association of Insurance Supervisors (IAIS), the Microinsurance Network (MIN) and the Access to Insurance Initiative (A2ii).
Briefing notes:
Watch the recordings of the live stream here:
Presentations:
Day 1
Introductory presentation: "Setting the scene: Why is scale important for agricultural insurance and what are the roles of the various stakeholders in achieving scale?" - Peter Wrede, World Bank | EN | FR
Intorductory presentation: "Insights from the 9th Consultative Forum in Singapore" - Joseph Owuor, Insurance Regulatory Authority Kenya | EN | FR
Panel: "Perspectives and challenges in scaling up and providing value in agricultural insurance" - Moderated by Lemmy Manje, Consultant:
- "The Uganda Agriculture Insurance Scheme" - Protazio Sande, Insurance Regulatory Authority Uganda | EN | FR
- "ACRE Africa: Role of Stakeholders in Agricultural Insurance" - Rahab Kariuki, ACRE Africa | EN | FR
- "Scaling up agriculture index insurance in Africa: Building disaster reslilience for small holder farmers" - Isaac Magina, Swiss Re | EN | FR
Day 2
Introductory presentation: "Overview of the IAIS application paper on inclusive index-based insurance" - Hannah Grant, Access to Insurance Initiative | EN | FR
Product workshop: Introductory presentations:
- "Preparing and assessing an agricultural index insurance product proposal" - Agrotosh Mookerjee, Risk Shield Consultants | EN | FR
- "Kenyan Experience: Product Approval for Agricultural Index Insurance" - Joseph Owuor, Insurance Regulatory Authority Kenya | EN | FR
- "Index Based Livestock Insurance: Borana Program, Ethiopia" - Melkachew Temesgen, Oromia Insurance Company Ethiopia | EN | FR
More Information:
On Twitter: #10thCF (as well as @A2ii_org @NetworkFlash #IAIS #agriinsurance #indexinsurance #disaster #resilience #microinsurance)
Photos:
