Scaling up and Improving Insurance Schemes for Farmers in India and Nigeria

Establishing well-designed insurance schemes in agriculture not only enhances resilience when climatic shocks occur, the presence of a safety net can help farmers overcome the risk of investing in climate-smart technologies. In India, 12 million farmers are already insured through weather-index sche...

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Autor principal: CGIAR Research Program on Climate Change, Agriculture and Food Security
Formato: Case Study
Lenguaje:Inglés
Publicado: 2015
Materias:
Acceso en línea:https://hdl.handle.net/10568/67899
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author CGIAR Research Program on Climate Change, Agriculture and Food Security
author_browse CGIAR Research Program on Climate Change, Agriculture and Food Security
author_facet CGIAR Research Program on Climate Change, Agriculture and Food Security
author_sort CGIAR Research Program on Climate Change, Agriculture and Food Security
collection Repository of Agricultural Research Outputs (CGSpace)
description Establishing well-designed insurance schemes in agriculture not only enhances resilience when climatic shocks occur, the presence of a safety net can help farmers overcome the risk of investing in climate-smart technologies. In India, 12 million farmers are already insured through weather-index schemes. However, reports indicate that many farmers are unsatisfied with the current schemes due to prevalent basis risk, which occurs when the index measurements do not line up with the insured person’s actual losses. Basis risk can be avoided through proper insurance scheme design and accurate measurements. CCAFS analysed the current index insurance scheme in India, and found that the insurance triggers were insufficient. Using various scientific techniques to analyse crop-weather relationships, CCAFS developed new triggers, specific to different regions and crops, without increasing premiums and the government subsidy load. Maharashtra state has already adopted these new products, as well as the Agricultural Insurance Company of India, providing improved rainfall risk coverage to nearly one million farmers.
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spelling CGSpace678992025-12-10T12:46:26Z Scaling up and Improving Insurance Schemes for Farmers in India and Nigeria CGIAR Research Program on Climate Change, Agriculture and Food Security climate change food security agriculture Establishing well-designed insurance schemes in agriculture not only enhances resilience when climatic shocks occur, the presence of a safety net can help farmers overcome the risk of investing in climate-smart technologies. In India, 12 million farmers are already insured through weather-index schemes. However, reports indicate that many farmers are unsatisfied with the current schemes due to prevalent basis risk, which occurs when the index measurements do not line up with the insured person’s actual losses. Basis risk can be avoided through proper insurance scheme design and accurate measurements. CCAFS analysed the current index insurance scheme in India, and found that the insurance triggers were insufficient. Using various scientific techniques to analyse crop-weather relationships, CCAFS developed new triggers, specific to different regions and crops, without increasing premiums and the government subsidy load. Maharashtra state has already adopted these new products, as well as the Agricultural Insurance Company of India, providing improved rainfall risk coverage to nearly one million farmers. 2015-08-13 2015-08-13T17:42:03Z 2015-08-13T17:42:03Z Case Study https://hdl.handle.net/10568/67899 en Open Access application/pdf CCAFS. 2015. Scaling up and Improving Insurance Schemes for Farmers in India and Nigeria. Outcome Cases. Copenhagen, Denmark: CGIAR Research Program on Climate Change, Agriculture and Food Security (CCAFS).
spellingShingle climate change
food security
agriculture
CGIAR Research Program on Climate Change, Agriculture and Food Security
Scaling up and Improving Insurance Schemes for Farmers in India and Nigeria
title Scaling up and Improving Insurance Schemes for Farmers in India and Nigeria
title_full Scaling up and Improving Insurance Schemes for Farmers in India and Nigeria
title_fullStr Scaling up and Improving Insurance Schemes for Farmers in India and Nigeria
title_full_unstemmed Scaling up and Improving Insurance Schemes for Farmers in India and Nigeria
title_short Scaling up and Improving Insurance Schemes for Farmers in India and Nigeria
title_sort scaling up and improving insurance schemes for farmers in india and nigeria
topic climate change
food security
agriculture
url https://hdl.handle.net/10568/67899
work_keys_str_mv AT cgiarresearchprogramonclimatechangeagricultureandfoodsecurity scalingupandimprovinginsuranceschemesforfarmersinindiaandnigeria