Insurance/re-insurance Company

The Ghana Agricultural Insurance Programme (GAIP) was launched in 2011. It has developed the first agricultural insurance for Ghana and thereby initiated a key adaptation measure to climate change. 19 Ghanaian insurance companies which form the Ghana Agricultural Insurance Pool ensure a solid financial foundation. The product range currently focuses on drought index insurance for maize and soya. Targeted research allows a constant broadening of the product range. For 2013 the Technical Management Unit (TMU) plans an area yield index insurance pilot, a wind cover for rubber and banana as well as aggregate loss of investment options for commercial farmers. The great response and continuous interest shown shown by farmers, input dealers and banks motivates the GAIP team to further develop agric insurance for this country. GIZ proudly supports the set-up of GAIP with itsInnovative Insurance Products for the Adaptation to Climate Change (IIPACC) project.

The Microinsurance Innovation Facility was established in 2008 to support the extension of insurance to millions of low-income people in the developing world, with the overall aim of reducing their vulnerability to risk.

The primary objective of the Facility is to increase the availability of better insurance products for a greater number of low-income households.

To do this, we need to learn:

• to what extent insurance products can help low-income people to manage risk
• what insurance products are appropriate and how to provide them
• how to develop an insurance culture among the poor

These objectives involve engaging in activities aimed at stimulating the market for microinsurance among low-income people - activities that support the development of insurance products, the emergence of institutional models and partnerships, and the education of potential consumers on the utility and value of insurance.

Endurance Specialty’s agricultural reinsurance group specializes in developing risk transfer solutions for crop and livestock risk for businesses around the world associated with the production of food and fiber. We bring considerable expertise to this sophisticated and rapidly changing industry and we offer significant reinsurance capacity to insurers. Our core competence is quantifying and pricing exposure and carrying the risk.

Through the use of cutting edge quantitative modeling techniques, we develop innovative products and covers that address today’s challenges including climate variability, volatile crop prices and an expanding list of livestock diseases. We prefer to partner on a project-based, product-development basis and commonly work with the active support of government agencies.

Key elements of our specialty strategy are:
• We provide traditional treaty reinsurance, proportional and aggregate stop loss for primary insurance companies writing multiple peril, hail and named peril covers, as well as custom risk transfer mechanisms for agricultural dependent industries with exposure to crop yields or prices.
• We partner with agricultural specialty insurance companies, banks, credit unions and agricultural cooperatives, to effectively leverage their distribution channels and platforms.
• We are global aggregators of agribusiness production risk associated with natural peril events We aggregate risk exposures across multiple dimensions (by region, peril and growing seasons) on a global basis.

At Endurance, we align the depth of our experience with our client’s needs, striving to position ourselves as the pre-eminent risk manager within the worldwide agricultural insurance marketplace.

The Co-operative Insurance Company of Kenya Limited (CIC Insurance) was established in 1978 and was formerly known as Co-operative Insurance Services Limited (CIS).

The company is the preferred underwriter of the co-operative movement in Kenya the founders and owners of the company. Over the last 7 years, CIC Insurance has recorded average growth of 37% compared to the industry rate of less than 11% in 2005. CIC gross premiums have increased from Kshs. 180m to Kshs. 1.7b in just eight years. The transformation that has taken place in CIC is in particular attested to by the spectacular growth from the little known insurance company occupying position 31 out of 37 insurance companies in 1998 to the presently relatively big and well known company with an annual premium income of Kshs. 1.7 billion in 2006.

Corporate Mission
CIC is committed to providing relevant, competitive and high quality insurance products and services that will make our customers financially secure. We will serve all sectors of the economy while developing and nurturing strong partnerships with the Co-operative sector and intermediary organizations.

Opportunity International provides small business loans, savings, insurance and training to more than two million people working their way out of poverty in the developing world – many of whom are involved in the agricultural sector. By providing these loans, savings, and insurance, Opportunity International provides much needed access to finance for agricultural producers in developing countries. Clients in over 20 countries use these financial services to start or expand a business, provide for their families, create jobs for their neighbors and build a safety net for the future.

PartnerRe Ltd. is a provider of risk-assumption solutions for the global insurance and capital markets. It provides insurance companies with multiple lines of reinsurance — property & casualty, catastrophe, specialty lines, life, and alternative risk transfer — through offices around the world.

Multi-Peril Crop Insurance (MPCI) and Crop Hail Reinsurance
Partner Re provides reinsurance capacity to insurers who provide crop insurance through MPCI programs, crop hail coverage and specialized named-peril programs. It helps clients manage their net retention, after the Federal SRA, as well as their portfolios of crop hail and named-peril exposures. Its industry expertise allows them to provide insight into clients’ needs regarding fund selection and other industry trends, and it prefer to provide this reinsurance through pro rata treaties.

To meet the long-term demand for food, it is necessary to have comprehensive risk management tools helping farmers in their business. Munich Re sees public-private partnerships (PPP) as the strongest possible basis for an intelligent solution, in which farmers, government and the insurance industry work together.

In the context of PPP and insurance-based risk management solutions, Munich Re has developed SystemAgro. Successful crop insurance systems have been in use for over 35 years and provide insurance coverage for more than 200 million hectares. Munich Re has analysed these systems and included the most successful aspects in SystemAgro. This system aims to help farmers face the challenges of the future.

Munich Re brings farmers, government and specialist insurers together and uses SystemAgro to develop the best-possible sustainable solution, which draws on Munich Re’s wide-ranging expertise and global business partnerships.
Munich Re combines high-tech components such as precision farming, remote sensing and state-of-the art harvest technology to be able to implement SystemAgro in any region of the world for any size of farming operation.
 

Insurance providers in developing regions rarely offer the hazard insurance familiar to industrialized countries. Earthquake, flood, and hurricane victims often lose their homes in an instant, recovering none of their assets or investment unless they are fortunate enough to be part of a donor-funded disaster relief program. Likewise, droughts can wipe out the crops or livestock that farmers rely on for income.

IFC, together with the International Bank for Reconstruction and Development (IBRD), also a member of the World Bank Group, has established the Global Index Insurance Facility (GIIF) to address this problem. GIIF takes an innovative index-based approach to insurance that aims to expand access to insurance products in developing countries, and particularly to farmers and people in agrarian communities.

The European Commission (EC) is the primary donor and committed €24.5 million to the GIIF Trust Fund. The EC’s support covers the development of local capacity building activities, the policy and regulatory window of the Program as well as product development and specific risk transfer projects in African, Caribbean, and Pacific (ACP) countries. GIIF is a global program and the Dutch Ministry of Foreign Affairs and the Japan’s Ministry of Finance provide additional funding to the Trust Fund to cover its activities in other regions.

GIIF projects by Region:

Implementation partners funded under GIIF are:

Sub-Saharan Africa

• Kilimo Salama (Syngenta Foundation - Kenya/Rwanda)
• International Livestock Research Institute (ILRI- Kenya)
• Guy Carpenter & Company, LLC (Mozambique)
• MicroEnsure (Rwanda)
• PlaNet Guarantee (Benin, Burkina Faso, Cote d’Ivoire, Mali, Senegal)

Latin America and the Caribbean

• MiCRO (Haiti)

South Asia

• Sanasa Insurance (Sri Lanka)
• Bangladesh feasibility study

East Asia and Pacific

• Maipark (Indonesia)
• Typhoon Index Insurance project in the Philippines (exp to start in November 2013)

GIIF Technical Partnership

GIIF has also entered into a Technical Partnership with Swiss Re Corporate Solutions which provides technical services to GIIF projects and supports the Program’s objectives through its long-standing experience in developing innovative risk transfer solutions for emerging markets.

Collaboration with IBRD

GIIF supports the regulatory and policy reforms for index-based agricultural insurance. Projects are ongoing in Nigeria and in the 14 Francophone West African countries in the CIMA region. Additionally, efforts in capacity building to develop an appropriate policy and regulatory framework for index-based agricultural insurance in 14 countries across Africa, Caribbean, Pacific and Latin America are progressing through the involvement of IBRD.

For further information, visit the IFC GIIF Website

The Access to Insurance Initiative is a global programme designed to strengthen the capacity and understanding of insurance supervisors, to facilitate their role in expanding access to insurance markets, and to support the implementation of sound regulatory and supervisory frameworks consistent with international standards.

The goal of the Access to Insurance Initiative is to enhance broad-based, demand-oriented and sustainable access to insurance for low-income clients; thereby growing financial inclusion in the insurance sphere.

The initiative is a partnership between the International Association of Insurance Supervisors (IAIS), GTZ, FinMark Trust, the International Labour Organization, among others organizations.  GTZ hosts the Secretariat.

Agricultural and livestock business is one of Hannover Re's specialty businesses. In this highly specialized line of business, clients seek not only reinsurance support but also advice and expertise. Its team of specialists, which is comprised of agronomists and a veterinarian, operates worldwide.

Agricultural and livestock insurance is gaining in importance not only in developed countries but also in emerging markets, where governments are increasingly supporting farmers with premium subsidies. Hannover Re therefore anticipate increased demand for agricultural and livestock insurance.
The principal lines of business in our specialty are:
• Hail insurance
• Multi-peril crop insurance (MPCI)
• Forestry
• Livestock
• Aquaculture
• Greenhouses and plant nurseries
Insured perils
• Crop hail: hail and possibly other named perils such as fire
• MPCI: storm, flood, frost. Extended coverage at an additional premium for drought, uncontrollable pests and diseases
• Forestry and greenhouses: fire, lightning, aircraft explosion. Extended coverage: frost, weight of snow, storm, hail
• Livestock: mortality caused by fire, natural perils (storm, flood, etc.), accidents, manifestation of disease, illness
• Aquaculture: death caused by natural perils, algae bloom, pests and diseases