Technical Guide Identifies Best Practices For Weather Index Insurance
WFP and IFAD are working together on a project to provide weather index-based insurance to cover small farmers in case of climate-related risk like flood and droughts. Recently, the partnership yielded a technical guide, providing practical decision-making steps for practitioners and donors.
IFAD and WFP (Office for Climate Change and Disaster Risk Reduction) have been working together on weather index-based insurance (WII) since 2008 through the joint Weather Risk Management Facility (WRMF). The WRMFconducts global research to identify good practice in weather index-based insurance, while designing and implementing index insurance pilots in China and Ethiopia to test and evaluate if index insurance can be used to support smallholders and food insecure communities.
Weather Index-based Insurance: A Technical Guide
IFAD and WFP have been working together on weather index-based insurance (WII) since 2008 through the joint Weather Risk Management Facility (WRMF).
Over the last year, the WRMF has produced a technical guide on index based weather insurance. This technical guide translates our research and experience to date into practical decision-making steps for practitioners and donors. It goes through each phase of a weather index insurance from project design to management process, including:
Assessing if weather index insurance is feasible;
- Developing a roadmap to pilot and implement weather index insurance; and
- Scaling up and sustaining an index insurance programme.
This guide comes at a very important time when many organizations are looking at the potential of weather index insurance and how to bring it to scale in a sustainable way. Weather index insurance is a challenge tool, but when combined with other tools such as access to credit, and integrated into a disaster risk reduction program, it has significant potential. This guide distils good practice into a usable tool which can help practitioners in their efforts to build resilience and improve food security.
Download the report here
For more information please contact Niels Balzer, Policy Officer with the Office for Climate Change and Disaster Risk Reduction.