De-risking agriculture through crop insurance? Insights from an impact evaluation of novel insurance solutions

• Climate change has led to increased production risks especially for smallholder farmers who often tend to be more vulnerable • Sub-Saharan Africa (SSA) has several climate change hotspots and is more vulnerable to weather shocks compared to other regions. • >363 million people affected by drou...

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Main Authors: Waweru, Carol, Kramer, Berber, Cecchi, Francesco, Kivuva, Benjamin, Waithaka, Lilian
Format: Ponencia
Language:Inglés
Published: International Food Policy Research Institute 2023
Subjects:
Online Access:https://hdl.handle.net/10568/134742
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author Waweru, Carol
Kramer, Berber
Cecchi, Francesco
Kivuva, Benjamin
Waithaka, Lilian
author_browse Cecchi, Francesco
Kivuva, Benjamin
Kramer, Berber
Waithaka, Lilian
Waweru, Carol
author_facet Waweru, Carol
Kramer, Berber
Cecchi, Francesco
Kivuva, Benjamin
Waithaka, Lilian
author_sort Waweru, Carol
collection Repository of Agricultural Research Outputs (CGSpace)
description • Climate change has led to increased production risks especially for smallholder farmers who often tend to be more vulnerable • Sub-Saharan Africa (SSA) has several climate change hotspots and is more vulnerable to weather shocks compared to other regions. • >363 million people affected by drought between 1980-2014 causing > US$31 billion in losses – with 19 billion in East Africa (FAO, 2015) • Agricultural insurance is a risk management tool for extreme weather events; however, its coverage remains lowest in SSA (Hess and Hazell, 2016). • Ex post – insurance payouts help coping with losses • Ex ante – risk reduction can increase investments in agriculture • However, traditional indemnity-based insurance is characterized by high transaction costs and information asymmetry problems • Index-based insurance to address these challenges is plagued by high basis risk
format Ponencia
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institution CGIAR Consortium
language Inglés
publishDate 2023
publishDateRange 2023
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publisherStr International Food Policy Research Institute
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spelling CGSpace1347422025-11-06T06:36:16Z De-risking agriculture through crop insurance? Insights from an impact evaluation of novel insurance solutions Waweru, Carol Kramer, Berber Cecchi, Francesco Kivuva, Benjamin Waithaka, Lilian climate change smallholders shocks agricultural insurance inputs • Climate change has led to increased production risks especially for smallholder farmers who often tend to be more vulnerable • Sub-Saharan Africa (SSA) has several climate change hotspots and is more vulnerable to weather shocks compared to other regions. • >363 million people affected by drought between 1980-2014 causing > US$31 billion in losses – with 19 billion in East Africa (FAO, 2015) • Agricultural insurance is a risk management tool for extreme weather events; however, its coverage remains lowest in SSA (Hess and Hazell, 2016). • Ex post – insurance payouts help coping with losses • Ex ante – risk reduction can increase investments in agriculture • However, traditional indemnity-based insurance is characterized by high transaction costs and information asymmetry problems • Index-based insurance to address these challenges is plagued by high basis risk 2023-04-27 2023-11-27T18:10:41Z 2023-11-27T18:10:41Z Presentation https://hdl.handle.net/10568/134742 en Open Access application/pdf International Food Policy Research Institute Waweru, Carol; Kramer, Berber; Cecchi, Francesco; Kivuva, Benjamin; and Waithaka, Lilian. 2023. De-risking agriculture through crop insurance? Insights from an impact evaluation of novel insurance solutions. Presented at the 4th Kenya Think Tanks Symposium, 27th April 2023. https://hdl.handle.net/10568/134742
spellingShingle climate change
smallholders
shocks
agricultural insurance
inputs
Waweru, Carol
Kramer, Berber
Cecchi, Francesco
Kivuva, Benjamin
Waithaka, Lilian
De-risking agriculture through crop insurance? Insights from an impact evaluation of novel insurance solutions
title De-risking agriculture through crop insurance? Insights from an impact evaluation of novel insurance solutions
title_full De-risking agriculture through crop insurance? Insights from an impact evaluation of novel insurance solutions
title_fullStr De-risking agriculture through crop insurance? Insights from an impact evaluation of novel insurance solutions
title_full_unstemmed De-risking agriculture through crop insurance? Insights from an impact evaluation of novel insurance solutions
title_short De-risking agriculture through crop insurance? Insights from an impact evaluation of novel insurance solutions
title_sort de risking agriculture through crop insurance insights from an impact evaluation of novel insurance solutions
topic climate change
smallholders
shocks
agricultural insurance
inputs
url https://hdl.handle.net/10568/134742
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