seep annual conference 2015 inclusion and resilience: the next challenge insuring farm and family:...
Post on 14-Dec-2015
216 Views
Preview:
TRANSCRIPT
SEEP Annual Conference 2015Inclusion and Resilience: The Next Challenge
Insuring Farm and Family: Innovative Risk Management
Strategies in Developing Markets
Transferring risk to Increase Smallholder Investment
SEEP Annual Conference 2015Inclusion and Resilience: The Next Challenge
Rain Index Insurance in Senegal
Jean-Michel Voisard, Chief of Party, Feed the Future Senegal, Naatal Mbay, Engility
The FEED THE FUTURE SENEGAL NAATAL MBAY PROJECT
SEEP Annual Conference 2015Inclusion and Resilience: The Next Challenge
Implemented by
60,000 Households to dateAn objective of 150,000
A Value Chain project targeting small cereal farmers through private sector driven systems.
Cereal crops: Rice, Maize and Millet
Technologies: Seeds and Best production/ post-harvest practices, Contract facilitation and Market linkages, Financial services. The Southern zone agriculture systems are rainfed: adoption of new technologies is directly linked to access to finance and mitigating the rainfall risk.
IRRIGATED RICE
RAINFED CROPS
Senegal rain index insurance Program• Launched in 2012 – currently in its 4th season• Maize, Peanut, Millet, Upland Rice• Rainfall risk coverage: input loan reimbursement• Crop specific indices for 6 specific zones based on minimal
seasonal rainfall requirements. • Insurance cost to farmer is 4.5% to 16.0% of insured capital
depending on rainfall risk in the zone• Premium rates include a 50% government subsidy• Three rainfall triggers over total crop cycle • Sowing phase trigger: 30% of insured capital indemnity • Growing phase triggers: 80% of insured indemnity indemnity
SEEP Annual Conference 2015Inclusion and Resilience: The Next Challenge
SEEP Annual Conference 2015Inclusion and Resilience: The Next Challenge
Technology• Rain gauges equipped with
automated dataloggers• Coverage radius: 7.5 km• 51 rain gauges installed to
date = 9,000 sq km• Manual rain gauges
managed by participating farmer groups
• Data collected by National Meteo Agency
• CNAAS: Senegalese Agricultural Insurance Company – a Public Private Joint Venture
• PlaNet Guarantee Senegal: Technical partner and broker services to CNAAS• ISRA : National Agriculture Research Institute technical oversight of Index
development• ANACIM: Senegalese Meteo Agency validates rainfall reports • RE-INSURERS: SEN-RE, SWISS-RE, NCA-RE validate premium structure and re-
insure at a regional level• BANKS and MFIs: Issue loans to farmers and ultimate beneficiary of indemnity• Farmer organizations: Coordinate farmer loan applications and premiums • Ministry of Finance: Division of Insurance
SEEP Annual Conference 2015Inclusion and Resilience: The Next Challenge
Implementing partners
• Installation of Rain Gauges• Definition of index for new crops
and expansion zones• Pre-season sensitizations by
farmer organizations and PlaNet Guarantee
• Premiums validated by re-insurers prior to marketing phase
• Farmer groups coordinate insurance marketing with loan application process
• ANACIM produces certified rainfall logs to CNAAS and re-insurers
• Claims calculated by CNAAS and PlaNet Guarantee
• Claims settled within 4 months of harvest
• Debrief with partner farmer organizations and banks
RESULTS TO DATE
SEEP Annual Conference 2015Inclusion and Resilience: The Next Challenge
24
611
1471
3087
12 13 14 15
Rice
Milet
Maize
Total rural households inRainfed production zones:
+200K
2015 Program:3087 producers (608 women)3945 Ha$ 70,000 premiums$ 500,000 Insured Capital
2012-2014 Programs:2106 policies$ 56,000 premiums$ 52,000 indemnities (99% paid out in 2014 drought)
Participating farmers
Scaling strategy• Breakeven point is estimated at 100,000 farms or a penetration rate
of 50% of the region’s households• Early premium validation and improvement of farmer led distribution
system will accelerate adoption• Integration of rain index insurance to mainstream agricultural lending
by banks and large MFIs• Increase of geographic coverage in automated rain gauges: 250 rain
gauges - $1 million investment• Integration of grassroots savings and loans and women’s savings
groups• Adaptation to very small scale lending for women rice farmers on less
than 0.5 ha• Diversification to Cotton crop to cover full rain fed portfolio
SEEP Annual Conference 2015Inclusion and Resilience: The Next Challenge
Lessons learned and way forward• Synergy: the insurance program gains from multiple synergies from being
a component of a value chain program with a multi-level risk reduction strategy
• Entry point: The product is well understood by farmers that are part of structured groups producing with at least 30% marketing objective.
• Distribution strategy: Connection to pre-existing crop aggregation and credit distribution networks (farmer groups or banks).
• Technology buy-in: Farmers need to be able to validate the rainfall data themselves using manual rain gauges controlled by their own membership
• Building trust: Sensitisation and debriefings by Insurance company are key
• Cost effectiveness: working relationship with the Meteo agency • Competitiveness: Potential for competing models• Sector support strategy: Capacity for Government to maintain subsidy
levels at scale?
top related