Subscribe

Share




Josip Jezic von Gesseneck    2016-04-25

Index-based insurance

Technology developments mean more inclusion for small-scale farmers

Regional, Agriculture


Index-based insurance engages more small scale-farmers (image source: ccafs.cgiar.org)

Doubts have been raised over whether poor farmers struggling to feed their families would be willing to buy insurance, despite the fact that this insurance could, in fact, increase their productivity and food security. In addition, there are considerable challenges that must be overcome to effectively service remote areas with poor infrastructure.


However the science-and-technology-based approach of index-based insurance tackles many of the limitations of traditional insurance especially for remote small-scale farms and has the potential to scale tremendously. A study by CCAFS showcases initiatives that have overcome many of these challenges, scaling rapidly over the past few years to reach tens of thousands to tens of millions of smallholder farmers in some of the poorest areas of the world. Full report here