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Satellite and weather station-based weather index insurance -- PlaNet Guarantee

 
Country of Operation: Benin
Region: Africa
Sub Topics: Business models, Other channels, Data analysis and processing, Financial institutions, Policy and regulation, Consumer education, Agriculture, Agriculture
 

Organizational Overview

PlaNet Guarantee (PG), created in 2007, is a subsidiary of the PlaNet Finance Group dedicated to the promotion and development of microinsurance systems. PG is an insurance and reinsurance broker that offers innovative products responding to the needs and the financial capacities of microentrepreneurs and their families. It has access, through PlaNet Finance, to a network of 315 MFIs and currently covers more than 100 000 microentrepreneurs in Egypt, Cameroun, Senegal, Sri Lanka, and Madagascar.

 

Activities Overview

PlaNet Guarantee has designed index products in Benin, Burkina Faso, Mali and Senegal.

In Benin

The project started in 2012 with the design of three drought index products in partnership with EARS: early maize, late maize and cotton.  Raising awareness sessions were hold by the GEA for the clients of FECECAM. Despite a huge interest for the product there were no sales in 2012 due to the non authorization on time of the index product by the DNA.

In Burkina Faso

With funding from Africa Entreprise Challenge Fund (AECF), three index insurance products: satellite index insurance for early maize and late maize have been designed in partnership with EARS and average yield index insurance for cotton in partnership with I4, which started in 2010. The product is insured by Allianz Burkina Faso. The average yield index product was piloted for the first time this year. The claims will be settled for the average yield index beginning of 2014.

In Mali

Starting on funding from AECF and ILO in 2010, three drought index products have been designed in partnership with EARS: early maize, late maize and cotton. The project started in Benin in 2012. Raising awareness sessions were hold by the GEA for the clients of FECECAM. Despite a huge interest for the product there were no sales in 2012 due to the non authorization on time of the index product by the DNA.

In Senegal

Activities started in 2012 with weather station-based index insurance (maize, groundnut). The first year the price of the product was very high, and few farmers bought the product. The product was reviewed with farmers’ organizations, and CIRAD, in 2013. The index insurance product covers maize and groundnut against drought. It was designed in partnership with CIRAD, based on rainfall data collected by the Met services via 33 automatic rain gauges purchased by USAID and the World Bank. The product is insured by CNAAS.

 

 

Learning Agenda

  • What are the technical issues that need to be considered for developing an index insurance project in a country?
  • What are the pre-conditions that must be met to launch index insurance in a country?
  • What are the preconditions that need to be achieved to build scale in index insurance products?
  • What kind of claims process is required to speed settlement to large number of beneficiaries?
  • How can management information systems ensure speedy information flow to help in scaling up? 
Contributor/s:  The content of this page is from the project's page on the GIIF website.