On June 27, Making Finance Work for Africa, IPA, 3ie, PlaNet Guarantee, the University of Kent, and Oklahoma State University presented a webinar on "Enhancing Access to Index-Based Weather Insurance: A New Marketing Approach in Burkina Faso."
Of the billion people worldwide living on less than US $1 per day, known as the poverty line, nearly 75 percent depend on agriculture for their livelihoods. Unpredictable rainfall is one of the largest sources of risk poor farming households face, as low or excess rainfall can substantially reduce crop yields and lead to large drops in income and consumption.
Rainfall insurance is a potentially cost-effective way to protect farmers in low-income countries from adverse weather events, but its adoption has been low. IPA conducted a study to determine whether marketing rainfall insurance to farmers' urban relatives, who often help support their rural family members, may increase its use. They partnered with micro-insurance organization Planet Guarantee to evaluate the demand for a rainfall insurance product marketed to urban relatives of farmers in Burkina Faso.
- Provide an overview of the state of the index-based weather insurance in Africa;
- Discuss the study findings and limitations while exploring ways this marketing strategy could lead to greater uptake of rainfall insurance across African countries;
- Contrast this model with that of East Africa and gain insights from actual marketing companies and regulators in Burkina-Faso.