PlaNet Guarantee - Senegal
Clients:
29,956 (12,948 in 2016)
Partners:
Insurers: CNAAS
Reinsurers: Swiss Re, Africa Re, CICA Re
Product design: PG, CIRAD and IRI
Products:
Weather station-based weather index insurance
Insured Crops/Livestock:
Maize, groundnut, millet, rain-fed rice, multi cereal
Insured Perils:
Drought
Total Insurance Portfolio:
78,856 insured farmers and $1,058,810 collected premiums in Senegal, Mali, Burkina Faso, Benin and Ivory Coast.
Project Description:
PlaNet Guarantee provides weather station based weather index insurance for maize, groundnut and millet farmers in Senegal. Farmer cooperatives are the main distribution partners. PlaNet Guarantee first sold products in Senegal in 2012.
Insurance Payouts:
$412,656 in Senegal, Mali, Burkina Faso and Benin (2015) with 69 % claims ratio (2015)
Average Cost of Insurance:
11%; $13 per farmer
Development Impact:
Benefiting from a strong participation from the State of Senegal, who capitalized CNAAS as a PPP and provides a 50% subsidies on all crop insurance premiums, the index-based insurance program is built on strong pillars. The distribution model, based on farmer organizations, allowed good awareness raising and sharing of concrete experiences among farmers who adopted Index-Based insurance as a new climatic risk mitigation tool.
Using a participatory approach during the design phase that was directly tailored to the farmers’ profiles, and a significant global claims ratio of 50 percent (from 2012 to 2015), which was evaluated every year in the field, these insurance products offer a real added value to the farmers, and are now associated with offering an important development potential.
Opportunities:
The scaling-up strategy is to bundle the index-based insurance products with agricultural loans and savings programs provided by both microfinance institutions (MFIs) and agricultural banks. The network of weather stations is currently being developed to increase the covered areas, and the bundling of credit-insurance distribution for professional farmers is scheduled to begin in 2017. A saving-insurance mechanism for more vulnerable farmers is currently being developed with the World Food Program (WFP) and OXFAM.
Contacts:
Sebastien Weber: sweber@planetguarantee.org