Mitigating Climate Risk and Protecting Smallholder Agricultural Investments in Senegal: Rain Index Insurance as a Risk Reduction Strategy
Seasonal rainfall is a key determinant in crop production globally, but due to increasingly erratic rainfall patterns, smallholder farmers face increasing uncertainty and loss of potential earnings. This session looks at the work of RTI International in Senegal on the Feed the Future Naatal Mbay project and specifically, their development of rain-index insurance for smallholder cereal farmers. More than 10,500 producers subscribed to agricultural rain-index insurance in 2018, up from 3,087 in 2015 when the project began, representing a 240% increase. In the session, participants will consider ways that index insurance might fit different farmer needs and appreciate how different cost structures can make insurance products affordable to subscribers while building insufficient profit margins for the insurance provider. Through participatory group work, participants will explore what other types of insurance could reduce systemic risks for smallholders and other value chain actors in other contexts.
Elhadji Abdou Gueye