Agricultural insurance is a business transaction based on the quantification of risk. The basis for all calculations of risk exposure in agriculture is sound data. Lack of data makes insurance companies shy away from agricultural insurance, either because the uncertainty makes it impossible to calculate risk or because the cost required to generate data makes the business model unviable. Generating data and making that data available to insurance companies is a key contribution from the public sector to the development of agricultural insurance. Insurers should have a right to access data that

The success of agricultural insurance depends on the demand by farmers. But while there is clearly a need for agricultural insurance, demand is not high among low-income farmers. A major factor is that the farming community has a low level of awareness about insurance. A key component within any agricultural insurance initiative is to educate farmers about the importance of insurance and how the products help them overcome difficult times. It is equally important to show farmers the limitations of insurance in order to not create unrealistic expectations

The core objective is to assist the insurance sector in Ghana to develop and offer innovative, demand-oriented and economically viable insurance products to cover financial risks on account of crop losses caused by extreme weather events and impact of climate change.

There are two major challenges with respect to agricultural insurance in Ghana: 1. Enrollment: Scaling performance of the agricultural insurance market remains low (very few products). The growth rate of the sector is very slow (36% from 2011–2016). Very poor performances in 2012 and 2013 when overall enrolment dropped by 84% and 86% respectively. These challenges are attributable to the complexity of insurance products, financial illiteracy, and aversion towards new risk management approaches. 2. Claims: The only prominent claim pay-outs were in 2015 where 1,701 farmers received a payment

The overall aim of the project is to prepare the ground for implementing risk transfer solutions within an integrated flood risk management approach for municipalities in GAMA, Ghana.