Aufsatz
Index-based agricultural insurance products: challenges, opportunities and prospects for uptake in sub-Sahara Africa
Abstract
Agricultural insurance products have been piloted in Sub-Saharan Africa (SSA) to address climate related risks faced by farmers. However, these products in general face low rates of adoption in SSA. Factors and challenges that may explain the low uptake of index-based insurance products in SSA are reviewed in this paper with the objective of assessing and documenting (i) the insurance products available to farmers, (ii) factors influencing farmers to purchase insurance products, (iii) challenges limiting farmers accessing to insurance products and (iv) opportunities that can positively enhance uptake in SSA. This review reveals that area yield index insurance, index-based crop insurance and index-based livestock insurance have been piloted or implemented in the region. The uptake of these products was found to be positively correlated with on-farm income/savings, literacy, and family size with estimated coefficients of 0.211, 0.292 and 0.018, respectively; and negatively correlated with premium rate (−0.183), age of farmer (−0.058), land tenure (−0.800) and farm size (−0.167). Challenges that impede uptake of index-based products include weakness of regulatory environment and financial facilities, basis risk, quality and availability of weather data, capacity building of stakeholders (farmer, insurer, and regulator), and lack of innovation for local adaptation and scalability. The current gap between high promise and low uptake calls for farmer-driven product design, strong public-private partnerships and improved quality and availability of weather data.
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Vol 118, No 2 (2017) (Journal of Agriculture and Rural Development in the Tropics and Subtropics (JARTS))Citation
@article{urn:nbn:de:hebis:34-2017042052372,
author={Ntukamazina, Nepomuscene and Onwonga, Richard N. and Sommer, Rolf and Rubyogo, Jean Claude and Mukankusi, Clare M. and Mburu, John and Kariuki, Rahab},
title={Index-based agricultural insurance products: challenges, opportunities and prospects for uptake in sub-Sahara Africa},
year={2017}
}
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<resource xsi:schemaLocation="http://datacite.org/schema/kernel-2.2 http://schema.datacite.org/meta/kernel-2.2/metadata.xsd"> 2017-07-26T14:05:25Z 2017-07-26T14:05:25Z 2017-07-25 1612-9830 2363-6033 urn:nbn:de:hebis:34-2017042052372 http://hdl.handle.net/123456789/2017042052372 eng Kassel University Press Urheberrechtlich geschützt https://rightsstatements.org/page/InC/1.0/ adoption driving factor crop and livestock insurance developing countries weather risk management 630 Index-based agricultural insurance products: challenges, opportunities and prospects for uptake in sub-Sahara Africa Aufsatz Agricultural insurance products have been piloted in Sub-Saharan Africa (SSA) to address climate related risks faced by farmers. However, these products in general face low rates of adoption in SSA. Factors and challenges that may explain the low uptake of index-based insurance products in SSA are reviewed in this paper with the objective of assessing and documenting (i) the insurance products available to farmers, (ii) factors influencing farmers to purchase insurance products, (iii) challenges limiting farmers accessing to insurance products and (iv) opportunities that can positively enhance uptake in SSA. This review reveals that area yield index insurance, index-based crop insurance and index-based livestock insurance have been piloted or implemented in the region. The uptake of these products was found to be positively correlated with on-farm income/savings, literacy, and family size with estimated coefficients of 0.211, 0.292 and 0.018, respectively; and negatively correlated with premium rate (−0.183), age of farmer (−0.058), land tenure (−0.800) and farm size (−0.167). Challenges that impede uptake of index-based products include weakness of regulatory environment and financial facilities, basis risk, quality and availability of weather data, capacity building of stakeholders (farmer, insurer, and regulator), and lack of innovation for local adaptation and scalability. The current gap between high promise and low uptake calls for farmer-driven product design, strong public-private partnerships and improved quality and availability of weather data. open access In: Journal of Agriculture and Rural Development in the Tropics and Subtropics. Kassel : Kassel University Press. - Vol. 118, No. 2 (2017) S. 171-185 Ntukamazina, Nepomuscene Onwonga, Richard N. Sommer, Rolf Rubyogo, Jean Claude Mukankusi, Clare M. Mburu, John Kariuki, Rahab Gedruckte Ausg. im Verlag Kassel Univ. Press (www.upress.uni-kassel.de) erschienen. </resource>
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