one world to protect, planet guarantee
TRANSCRIPT
Crop
Health and Life
Insurance Engineering and Services
Technical assistance Feasibility and Market Studies Risk analysis and definition of guarantees
Product development Micro-reinsurance brokerage
Products Key Success Factors
Innovative products
Products tailored to needs and elaborated with the clients and endbeneficiaries
Simplicity in implementation and management
Strong partnerships with leading insurers and reinsurers
Product development Micro-reinsurance brokerage
Vision
The objective of PlaNet Guarantee is to enable populations excluded from traditional insurance systems and not benefitting from social protection mechanisms to protect themselves against all types of risks: health, natural catastrophe, death, disability, accident,…
I. Overview of PlaNet Guaranteea. Vision
As an insurance broker, PlaNet Guarantee has developed a tailored social insurance offer and proposes a range of services in technical assitance and risk analysis.
I. Overview of PlaNet Guaranteeb. Organization and key figures
100% 100% 100%
International
PlaNet Guarantee Senegal
PlaNet Guarantee Burkina Faso
PlaNet Guarantee Mali
PlaNet Guarantee Ivory Coast
100%
70%10% 20%
INTRODUCTION
• Broker and advisor specialized in inclusive insurance and social protection since 2007
• Development of insurance products for people excluded from the conventional insurance system
• Design and implementation of technological solutions to push the boundaries of accessibility of insurance
• Growth sustained by breakthrough innovations in insurance and microinsurance with the use of index technologies and social networks
KEY FIGURES
• Headcount: 30
• Ongoing activities in 12 countries=> Fully licensed broker in 4 countries: Burkina Faso, Ivory Coast, Mali and Senegal (Benin in progress)
• 900,000 cumulated policies since 2008 representing 4 million beneficiaries
• 200,000 policies in 2014 via 50 insured groups in West Africa
• Headquartered in France with 1 operational platform based in Dakar employing 10 people
ORGANIZATION
Variability in agricultural seasons and
extreme climatic events
Agricultural insurance indispensable to protect farmers and strengthen the agricultural sector:
• By protecting the portfolio of banks and microfinance institutions, insurance secures the access to credit and allows to increase the development of agricultural activities.
• By increasing access to credit and securing the financial sector , agricultural insurance can attract more financing into the sectors(funds invest in banks /MFIs).
Food insecurity
Revenue LossesExcluded from
contracting another credit
Barrier to investing in
better quality seeds and equipment
Increased risk of bad harvests
Farmers forced to dip into their
savings to sustain
themselves
Inability to pay back the credit
II. Overview of index insurancea. Why Crop Insurance
The problem faced by farmers:
Index insurance is more adapted to the emerging economy contexts than is traditional insurance
Insurance which pays out in function of individual risk is not feasible – administration costs and moral hazard
Index Insurance: Indemnity on the basis of
attaining a certain trigger level of reference
Types of indexes: average yield or climate Indexes (rain, temperature, wind, etc.)
Data sources: Satellite, yields, Weather Stations
BENEFITS OF INDEX INSURANCE
Lower costs = lower premiums
Coverage of the hardest risks to manage
Decrease of moral hazard and adverse selection
Possibility to adapt the cost of insurance to purchasing power of producers
Automatic claims payout
II. Overview of index insuranceb. What is index Insurance
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PlaNet Gurantee’s insurance solutions mitigate the impact of climate events for all players in the value chain
Insurance mitigates the impact of climate events and secures future production...
...stabilizing income in the whole agriculture value chain
DroughtsFloods
Temperature
Y-1 Y0 Y1 Y2 Y3
RevenueNot insured
RevenueInsured
Insurance coverage
Level of Production & Revenue
FarmersStabilized income Improved food security Secured future production (seed purchase) Secured financing options (stable income)
Banks & MFIsReduced Risk in the Portfolio Reduced write-offs & recovery costs Extended lending business
Agriculture Businesses (seeds, fertilizers)Stabilized Demand/ Revenues Stabilized sales to farmers Hedged revenue decline Grown customer base (subsidising insurance of farmers)
Production Companies (millers, cotton companies...)Stabilized Supply/ Costs Stabilized supply (decreased duration of downturn) Hedged costs of climate events Grown supplier base (subsidising insurance of farmers)
II. Overview of index insuranceC. Positive Value Chain Impact
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Overall Objective:
By protecting the portfolio of banks and microfinance institutions, insurance secures the access to credit and allows to increase the development of agricultural activities.
Moreover, by increasing access to credit and securing the financial sector the projects contributes to growth of the overall agricultural sector.
Specific Objectives: Propose agricultural insurance solutions adapted to the needs of farmers Develop a viable agricultural insurance model Improve the financing of agriculture in the targeted countries Develop insurance culture amongst the population of farmers
Favor access of farmers to insurance in order to reduce the fluctuation in agricultural income and secure the financing mechanism of agriculture
III. Assurance Récolte Sahela. Overview - Objectives
A farmer buys inputs from an agri-dealer or takes out
a loan from an MFI/bank
The premium is included in the
price of the inputs or the loan
The premium is collected at the
time of loan contraction and
transferred to the insurer by the
distribution channel
A list of all the adherents is
transferred to PG who manages the
process
In times of poor harvest, the index is
automatically triggered based on
weather or yield conditions
The insurer pays out to the insured
parties
Management of the entire process done by PlaNet Guarantee
III. Assurance Récolte Sahelb. Example of How it Works
Product Design Training
Distribution Awareness raising
III. Assurance Récolte SahelC. Activities – Main Activities
Before the start of the Assurance Récolte Sahel project by PlaNet Guarantee there was no existing initiative dedicated to index crop insurance in Francophone West Africa.
PlaNet Guarantee undertook the task of raising awareness on insurance in general and index insurance more particularly
Awareness campaigns and training were run amongst farmers, distribution networks, local insurers, insurance regulators, governments etc.
III. Assurance Récolte SahelC. Activities - Raising Awareness Examples
Types of indexes developed
Maize / rainfall deficit index based on satellite information (RE)
Developed with EARS. 6000 villages covered Distribution on-going.
Cotton / rainfall deficit index based on satellite information (RE) In development. 150 villages covered.
Main distribution Partners
COPROCUMA Mali-Sud 3 (Agricultural cooperative), BIM-SA(Commercial bank, subsiduary of Attijariwafa bank group), Compagnie Malienne pour le Développement du Textile (CMDT_UNSCPC), Soro Yiriwaso – (MFI)
III. Assurance Récolte Saheld. Country Overview - Mali
Types of indexes developed:
Maïze / rainfall deficit index based on satellite information (RE). Developed with EARS. 6000 villages covered Distribution on-going.
Coton SOFITEX / average yield index being developed with I4. Potentialto cover 1500 cooperatives
Coton SN CITEC / rainfall deficit index based on satellite information (RE)in development. 12 zones covered.
Main Distribution Partners:
Union Nationale des Producteurs de Coton / SOFITEX / Ecobank, Société Nouvelle Huilerie and Savonnerie CITEC, EcobankBurkina Faso, Réseau des Caisses Populaires du Burkina (RCPB - Leading MFI with almost 80% of market)
Other partners : small MFIs (APFI, MFP, URCCOM), cooperatives (FEPAB, Impact Ecologie) and input distributor (Agrodia).
II. Assurance Récolte Saheld. Country Overview – Burkina Faso
Types of indexes developed:
Maize, groundut, Millet / 3 rainfall deficit indexes developed with CIRAD and based on rainfall measured through a network of 50 weather stations
After 2 years of follow-up of the index by field visits, ANACIM develops this year a GPRS data transmission mechanism. The collaboration project with USAID and the World Bank provides each year to expand the coverage area by installing new weather stations
Main distribution Partners:
CCPA et RNCPS. Rural coopeartives – groundnut producers, FEPROMAS (Rural cooperative – maize producers), CaisseNationale de Crédit Agricole du Sénégal (CNCAS A main financial institution), ACEP and PAMECAS (MFIs active in input financing)
The partnership developed with the project " R4 Rural Resilience Initiative in Senegal " initiated by OXFAM is the first opportunity for the ARS Dakar platform for the management of an insurance portfolio developed outside the PlaNetGuarantee program.
III. Assurance Récolte Saheld. Country Overview - Senegal
Exploratory missions on cocoa and cotton
In cocoa, risks mainly linked to illness. Average age of producers and of plantations is high
Cotton sector represents a strong potential
Large agribusiness interested in meso approach to insurance
PlaNet Guarantee initiative on social Protection for farmers
Large agribusinesses, growingly concerned with the well-being of their farmer networks, are ready to participate in the development of health insurance and social protection for their farmers
PlaNet Guarantee is working on a PPP model to cover major health risks and favour the development of the health care network
III. Assurance Récolte Saheld. Country Overview – Côte d’Ivoire
Interview of Nimna Diayite, president of maize producerscooperative (FEPROMAS), Senegal, 2013.
How would you qualify your collaboration with PlaNet Guarantee?
Our partnership with PlaNet Guarantee since 2012 has beenreally positive and we hope to strengthen it in the upcomingyears. We have been for a long time in search of a way to protectourselves against the risk of bad harvest due to climate hazard,and PlaNet Guarantee brought us the index insurance solution.
What is the added value of the 4970 dollars your cooperativereceived as payout from PlaNet Guarantee?
This compensation has been really useful; it allowed us to repaythe credit to the bank and save some money that will serve forother useful purposes. We hope this initiative will be extendedto farmers that couldn’t benefit from it this year. Before the startof the ARS project by PlaNet Guarantee there was no existinginitiative dedicated to index crop insurance.
III. Assurance Récolte Sahele. Partners - Client Testimony
Thank you!
PlaNet Guarantee111 Boulevard Pereire
75017 Paris France
Anaar KaraR&D Director
PlaNet [email protected]…………………………
Mob : +33 (0)6.66.02.89.25