STORY HIGHLIGHTS
The World Bank Group’s foray into index insurance started in 2000 with a $117,000 Development Marketplace grant to pilot weather insurance in four countries.
Since then the institution has worked with insurers, reinsurers, brokers, banks, agribusinesses and governments to develop index insurance programs through the Disaster Risk Financing and Insurance Program and the Global Index Insurance Facility, managed out of the Finance and Markets Global Practice.
Based on a statistical index developed to measure deviations from normal for such parameters as rainfall, temperature, seismic activity, wind speed, crop yield or livestock mortality rates, index insurance pays out benefits for loss of assets and investments resulting from weather and catastrophic events; thus it doesn’t require the services of insurance claims assessors.
In countries where agricultural insurance and disaster insurance are either unavailable or expensive, index insurance can provide an alternative and protect people from shocks without placing insurers at an informational disadvantage.
As climate change adaptation and disaster risk management have become mainstream in development work, focus on insurance has increased because uninsured losses keep vulnerable populations in poverty.
For more details, please click on the original link here.
STORY HIGHLIGHTS
The World Bank Group’s foray into index insurance started in 2000 with a $117,000 Development Marketplace grant to pilot weather insurance in four countries.
Since then the institution has worked with insurers, reinsurers, brokers, banks, agribusinesses and governments to develop index insurance programs through the Disaster Risk Financing and Insurance Program and the Global Index Insurance Facility, managed out of the Finance and Markets Global Practice.
Based on a statistical index developed to measure deviations from normal for such parameters as rainfall, temperature, seismic activity, wind speed, crop yield or livestock mortality rates, index insurance pays out benefits for loss of assets and investments resulting from weather and catastrophic events; thus it doesn’t require the services of insurance claims assessors.
In countries where agricultural insurance and disaster insurance are either unavailable or expensive, index insurance can provide an alternative and protect people from shocks without placing insurers at an informational disadvantage.
As climate change adaptation and disaster risk management have become mainstream in development work, focus on insurance has increased because uninsured losses keep vulnerable populations in poverty.
For more details, please click on the original link here.
