Digital Tools to Expand Access to Agricultural Insurance by USAID
Smallholder farmers have the potential to play an ever-increasing role in feeding the world through the sustainable supply of key agricultural commodities. However, most smallholder farmers lack the ability to properly manage risk, which limits the amount that they are willing to invest in their farms. Agricultural insurance is one way to manage risk; however, as with most financial services, insurance has historically been out of reach for those in rural areas.
The guide on Using Digital Tools to Expand Access to Agricultural Insurance by USAID seeks for low-cost solutions to these issues using communication technologies to grand easy and effective access to agriculture insurance at global level. The guide was developed to support food security strategies implemented by USAID across the world, however, it is intended to support food security and financial inclusion practices for different development actors, providing a source of knowledge for capacity building, awareness creation and community development initiatives at different levels.
Users of this guide can benefit from using this guide through a shared knowledge practice, considering the current market and industrial guidelines to serve as examples for the development of digital mechanisms related to insurance. In addition, the guide also provides an analytical framework to identify whether agricultural insurance is a feasible solution on a local basis, and what type of investments are necessary to implement it, based on six variables: 1. Agricultural risk within a value chain. 2. Existing risk management tools. 3. Existing insurance markets. 4. Feasibility of digital agriculture insurance. 5. Regulatory and policy environment. and 6. Assessment and identification of the intervention.
To have access to the complete guide, please visit: https://www.usaid.gov/GlobalDevLab/documents/using-digital-tools-expand-agricultural-insurance
Adaptation Agricultural Insurance Climate Change Mitigation