What questions need to be asked by investors and donors of Agricultural Insurance providers to Assist Smallholder Farmers and humanitarian funds?
Gates Foundation
QIC / MENA InsurTech
This research develops practical questions and methodologies that investors and donors can use to evaluate agricultural index insurance projects and related humanitarian funds.
Index insurance, when it began roughly twenty years ago, was heralded as a breakthrough for insuring farmers and rural households because it addressed key challenges of traditional crop insurance—particularly moral hazard, adverse selection, and the high cost of individual farm loss assessment.
The emergence of index-based insurance products for addressing systemic risks in agriculture in an affordable way led to numerous projects by international development organizations, donors, the private sector, and NGOs.
At the same time, there are fundamental challenges with index insurance in practice. It may be too expensive for the value it provides, and it may not be accurate enough. Basis risk remains a persistent concern: a farmer or village could suffer losses that do not get compensated if the index does not trigger a payout.
The objective of this research is to develop a set of practical questions and methodologies for investors and donors to evaluate agricultural index insurance projects and related humanitarian funds, in ways that can be applied in existing large-scale projects.
Guided by the belief that every life has equal value, the Gates Foundation works to help all people lead healthy, productive lives. In developing countries, it works with partners to create impactful solutions so people can take charge of their futures.
Qatar Insurance Company Q.S.P.C is a publicly listed insurer with a consistent performance history of over 60 years and a global underwriting footprint. Founded in 1964, QIC is the market leader in Qatar and a dominant insurer in the GCC and MENA regions.
Columbia SIPA's Capstone Workshop connects applied policy and finance research with real-world partner needs, supporting rigorous analysis and practical frameworks that can be applied by decision-makers.
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