The potential for scale and sustainability in weather index insurance for agriculture and rural livelihoods
The potential for scale and sustainability in weather index insurance for agriculture and rural livelihoods
Extreme weather events and natural disasters such as drought or floods can have a devastating impact on food security as well as the social and economic development of rural households. In recent years, an increasing number of initiatives have tested weather index-based insurance to help manage these risks in agriculture. Building on the experience of the IFAD-WFP Weather Risk Management Facility (WRMF) and the analysis of 37 index insurance programmes around the world, this paper identifies eight key principles to help weather index-based insurance reach scale and sustainability. It also includes nine case studies on index insurance programmes and outlines how donors and governments can support the sector.