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Message from GIIF
 
On behalf of the team at the World Bank Group’s Global Index Insurance Facility (GIIF), I would like to invite our subscribers to the special Asia edition of our newsletter. A joint effort between GIIF and the ILO’s Impact Insurance Facility, this edition highlights the excellent momentum that agricultural insurance and index insurance are gaining in the Asia Pacific region -- from the Philippines, Indonesia, to Sri Lanka. GIIF and the Impact Insurance Facility are co-organizing The Building Sustainable Agriculture Insurance Program Workshop on November 14, 2016 in Colombo.
 
GIIF would like to use this opportunity to congratulate Dr. Andrew Mude of the International Livestock Research Institute on receiving the prestigious Norman Borlaug Award for Field Research and Application. The World Food Prize International Symposium honored his work on developing livestock index insurance in East Africa.
 
Fatou Assah
GIIF Program Manager
Feature Story

Philippines' Crop Insurance Helps Farmers 
When Typhoon Strikes



Photo: IFC

"First private sector-led crop-insurance product in the Philippines"


IFC partnered with CARD Pioneer Microinsurance Incorporated (CPMI) in the Philippines to design and launch a new crop-insurance product to protect farmers from typhoon-related losses.  It will initially target CARD’s farmer clients. CARD is the Philippines’ largest micro-finance institution with four million clients.  

“This is the first private sector-led crop-insurance product in the Philippines and a ground-breaking initiative by our partners CPMI and CARD,” said country manager Yuan Xu.

The agriculture sector contributes approximately 11 percent of the country’s GDP and provides employment for over one-third of its 40 million workforce. According to the 2016 World Risk Report, the Philippines is the third most vulnerable country for disaster risks, facing an average of 20 typhoons a year. The most powerful of recent typhoons, Yolanda, struck in November 2013, damaging crops, property, buildings, and infrastructure worth Philippine pesos 361 billion ($7.5 billion).

Insurance Commissioner Emmanuel Dooc welcomed this innovative new product, which he said “will uplift the lives of farmers (who) are the most vulnerable when typhoons hit.”  Lack of appropriate risk-management measures in the market discourages agricultural investment, further hindering economic growth. Poverty levels among farmers are three times higher than those in other sectors.

IFC will continue to work with CPMI on other innovations to expand their market, including designing an index-based portfolio insurance product to protect institutions lending to farmers against typhoon risk.  “Our vision is that this program will be available to other financial institutions and distributors in the agriculture sector,” said Geric Laude, CEO of CARD Pioneer.

The initiative is supported by the Government of Canada and the Japanese government, a key donor to the Global Index Insurance Facility, a multi-donor trust fund managed by IFC and jointly implemented with the World Bank. Other donors include the European Union and the Netherlands. The facility’s objective is to expand the use of index insurance as a risk-management tool in agriculture, food security, and disaster risk reduction.

Click here to read the full article

See also: Farmers, microfinanciers insured vs crop damage (Manila Standard)
See also: CARD Pioneer’s crop insurance: More affordable than a pack of cigarettes (Business Mirror)
Click here to view the video on crop insurance for Filipino farmers.

GIIF in Asia Pacific: A Conversation with Vijayasekar 

Vijayasekar Kalavakonda, IFC Senior Financial Sector Specialist, talks about GIIF's current and future projects in Asia Pacific. In this interview conducted by GIIF, Vijay also discusses key opportunities and challenges for index insurance, particularly in the Asia Pacific region.
 
Global Index Insurance Facility Newsletter

In Focus: The World Food Prize
Recognizes a World Bank Group's Grantee

Photo: Dr. Andrew Mude (middle) poses with Mr. Samuel Munzele Maimbo and Ms. Fatou Assah, Practice Manager in the WBG’s Finance & Market Global Practice and the Program Manager of the WBG’s Global Index Insurance Facility, respectively. (World Bank)


Dr. Andrew Mude of the International Livestock Research Institute is named the 5th recipient of this prestigious award for his work in providing insurance to livestock herders in East Africa’s drylands through innovative, state-of-the art technologies.

On October 12, 2016, Dr. Mude, a World Bank Group's grantee, was formally presented with US$10,000 and the “Norman Borlaug Award for Field Research and Application, endowed by the Rockefeller Foundation”, in Des Moines, Iowa, as part of the 2016 World Food Prize international symposium.
 
The award was given in recognition of his work on the "Index-Based Livestock Insurance", which was supported by the World Bank's Global Index Insurance Program at its nascent stage, then later scaled up by the Disaster Risk Finance and Insurance Program. Both programs are managed by the Finance & Markets Global Practice. 
 
The World Food Prize was created in 1986 by Nobel Peace Prize Laureate Dr Norman Borlaug. It is the foremost international award recognizing individuals whose achievements have advanced human development by increasing the quality, quantity or availability of food in the world.

 

 
Read More
New GIIF Country Profiles

Newly designed Global Index Insurance Facility's Country Profiles for Sri Lanka, Indonesia, and the Philippines are available for viewing here. The documents contain an overview of GIIF projects in these countries as well as information on project partners.
Knowledge Corner
The Impact Insurance Facility's Research paper #35 provides a selective overview of the current state of research on the impact of microinsurance. Its key purpose is to explore the role played by insurance in developing countries. In reviewing the most recent literature about the impact of microinsurance in developing countries, special attention is given to the issue of statistical identification of the impact, and to the need of highlighting the channels through which microinsurance affects the outcomes.  The findings of the literature review have also been illustrated in an interesting infographic that can be found here. Although the effects of microinsurance are heterogeneous across the studies reviewed, this review shows that micro-insurance seems to achieve markedly positive results under specific provisions.
 
Briefing Note: Helping farmers understand index insurance - Guidelines for consumer education interventions

Index-based insurance is an innovative financial service that can help smallholder farmers manage some of the risks related to weather conditions. On one hand, the increasing availability of this financial service offers a big opportunity to both farmers and providers. On the other hand, the complexity of this risk management tool can lead to poorly-understood index insurance products that may do more harm than good. The Impact Insurance Facility’s recent Briefing Note explores this balance in more detail.

 
In Proparco's Private Sector & Development magazine, Chloe Dugger, Operations Officer in WBG's Finance and Markets Global Practice, and Rachel Sberro, Research Analyst on agriculture finance, write about WBG's Global Index Insurance Facility's experiences with index-based insurance in Senegal and Bangladesh. Their article focuses on micro- and meso-level approaches to distributing agricultural index insurance, which speeds up claims settlement by dispensing with loss assessments and payouts are determined on an objective basis, eliminating the risk of fraud.  


 

Webinar
 Role of Governments in Scaling Up
Agriculture (Index) Insurance

As a part of the Knowledge dissemination efforts, the Impact Insurance Facility, as a part of its collaboration with the WBG’s GIIF and the USAID supported GAN, organizes webinars which garner interest from many experts in our industry. One of the most recent webinars continued an interesting discussion on governments as important catalysts for developing the agriculture insurance market. Click here to watch this webinar.

Workshops and Events


Building Sustainable Agriculture Insurance Program
Date: November 14,  2016
Location:  Sri Lanka
GIIF and The Impact Insurance Facility are co-organizing a workshop on November 14 in Colombo, Sri Lanka. This workshop helps insurance practitioners and other players new to agriculture insurance to gain insights into farmer needs and behaviour, and how these can be translated into quality products and relevant processes, examine the requirements to make the insurance value chain efficient for scaling up, and look into emerging models and good practices in agriculture insurance. 

The Impact Insurance Forum 2016
Date: November 15,  2016
Location:  Sri Lanka
Description: The Forum is a pre-conference session to the 12th International Microinsurance Conference, hosted by the Insurance Association of Sri Lanka (IASL), the Munich Re Foundation and the Microinsurance Network. This year’s Forum will focus on the theme of "Becoming a digital insurer” and explore the various digital tools and technology that can be used to improve insurance solutions for emerging markets. It will focus on how to improve customer experience, automate business processes and use data better so that insurance providers can make the most of their investments to achieve high uptake and sustained customer use. It will also explore what insurance practitioners can do to start the digital journey and to ensure that customer risks are mitigated along the process. Click here for the overview.

 
About Us

The Global Index Insurance Facility (GIIF) is a multi-donor trust fund supporting the development and growth of local markets for weather and disaster index-based insurance in developing countries, primarily Sub-Saharan Africa, Latin America and the Caribbean, and Asia Pacific.

Housed at the International Labour Organization, the Impact Insurance Facility enables the insurance industry, governments, and their partners to realise the potential of insurance for social and economic development. The Facility was launched in 2008 with generous support from the Bill & Melinda Gates Foundation, and has received subsequent funding from several donors, including the Z Zurich Foundation, Munich Re Foundation, the World Bank Group, USAID, AFD, FSDA, Africa Re and AusAID.

GIIF Donors



GIIF is funded by the European Union, Japan, and the Netherlands.

The EU is the primary donor partner to the GIIF Trust Fund with a focus on the African, Caribbean and Pacific Group of States (ACP). The governments of Japan and the Netherlands are providing additional support to different regions and countries where World Bank Group operates.
Contact GIIF
Fatou Assah | GIIF Program Manager | fassah@worldbank.org
Selin Konrat | Operations Officer | skonrat@ifc.org


Contact Impact Insurance Facility
Impact Insurance Facility | impactinsurance@ilo.org
Pranav Prashad | prashad@ilo.org
Copyright © *World Bank Group*, All rights reserved.

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