In Mozambique, agriculture accounts for approximately 32% of GDP and involves over 81% of the population. Yet, only a fraction of Mozambique’s potentially arable land is currently under cultivation. This lack of arable land usage is in large part due to risk aversion on the part of farmers and financial institutions since natural hazards such as droughts and floods regularly affect agricultural production. Up until recently, no market for agriculture insurance products existed for smallholder farmers in Mozambique leaving poor farmers in the country highly exposed to natural perils. This hinders their access to third-party capital, discourages the use of new farming techniques/technologies and overall hampers the ability of smallholders to exit poverty. As a direct result of a Local Capacity Building grant awarded to Guy Carpenter in 2011 from the World Bank Group's GIIF, the firm ─ in conjunction with the Asia Risk Centre Inc., Hollard Mozambique and EMOSE ─ designed, developed, and deployed two agriculture weather index insurance pilots in Mozambique in late 2012. The index-based insurance products covered maize farmers in the district of Chimoio and cotton production in the districts of Lalaua and Monapo.
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ACRE Africa (formerly the Kilimo Salama project of the Syngenta Foundation for Sustainable Agriculture) is having an active project in Kenya, Rwanda, and Tanzania. The largest private sector index-based insurance program in Kenya and Africa develops and offers insurance for African farmers (smallholder to large-scale commercial farmers) so that they can feel confident investing in their farms and feed their communities. The initiative has designed insurance products to cover a variety of crops against drought, erratic rain, and disease. is an insurance initiative of the Syngenta Foundation for Sustainable Agriculture. It develops and offers insurance for African farmers (smallholder to large-scale commercial farmers) so that they can feel confident investing in their farms and feed their communities. The initiative has designed insurance products to cover a variety of crops against drought, erratic rain, and disease.
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Cattle production is a key economic activity in Uruguay, contributing nearly 50% of the value of exports. However beef cattle production is heavily exposed to the effects of weather events. On several occasions, droughts have resulted in livestock loss and reduction in productivity and fertility of surviving cows.
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Agricultural insurance was introduced in Nigeria in 1987 through the creation of the Nigerian Agricultural Insurance Scheme (NAIS). In 1993, the private company in charge of underwriting and implementing the NAIS was dissolved and replaced by a public-sector corporation, the Nigerian Agricultural Insurance Corporation, NAIC. Currently, NAIC writes a portfolio of crop, forestry, livestock, poultry and aquaculture insurance and also non-life commercial insurance lines. NAIC has received government support both in the form of the initial capitalization of the company and 50% premium subsidies on
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At the request of the Ministry of Finance of Senegal, a feasibility study was completed in 2009 to assess the potential of index insurance. This study recommended the development of weather-based index insurance for commercial farmers, and suggested a pilot for groundnut farmers in two departments – Nioro and Kaffrine. As a follow-up to these recommendations, CNAAS requested in 2011 financial and technical assistance from the World Bank in order to pilot-test index insurance for groundnut farmers. The objective of the pilot was 1) to test the operational and technical procedures of the weather
With the amendment of the Insurance act in 2011, the IRA of Uganda has become in charge of the regulation of micro-insurance. One of the main products considered under this business is a microinsurance product for farmers which would enhance their access to credit.