Kilmo Salama - Index-based Agriculture Insurance : A Product Design Case Study
Farming is a mainstay of the Kenyan economy, representing three quarters of employment in the country. Nearly half of all farming output in the country is for subsistence purposes. Therefore, many farmers livelihoods are entirely dependent on thei...
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| Format: | Working Paper |
| Language: | English en_US |
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Washington, DC
2015
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| Online Access: | http://documents.worldbank.org/curated/en/2015/03/24158203/kilmo-salama-index-based-agriculture-insurance-product-design-case-study http://hdl.handle.net/10986/21682 |
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okr-10986-216822021-04-23T14:04:04Z Kilmo Salama - Index-based Agriculture Insurance : A Product Design Case Study International Finance Corporation AGRICULTURAL INSURANCE AGRICULTURAL REGION BANKING SERVICES BANKS BARRIER CHEMICALS CLIMATE DAMAGES DEPOSIT DEVELOPING COUNTRIES DEVELOPMENT ECONOMICS DISTRIBUTION SYSTEM DROUGHT DROUGHT RISK DROUGHTS DRY SEASON EARTHQUAKES ECONOMIC PERSPECTIVE EXPOSURE FARMER FARMERS FARMING OUTPUT FINANCIAL INSTITUTIONS FINANCIAL PRODUCT FINANCIAL PRODUCTS FINANCIAL SERVICES FLOOD FORMAL BANKING FRAUD INCOME INCOMES INDEMNITY INFRASTRUCTURE REQUIREMENT INSURANCE INSURANCE COMPANY INSURANCE CONTRACTS INSURANCE COVERAGE INSURANCE INDUSTRY INSURANCE MARKET INSURANCE PREMIUM INSURANCE PRODUCT INSURANCE PRODUCTS INSURER INSURERS LACK OF INFRASTRUCTURE LOCAL FARMERS MAJORITY OF FARMERS MARGINAL COST MARKET PENETRATION MICRO-INSURANCE MICROFINANCE MOBILE BANKING MOBILE PHONE MOBILE PHONES NATURAL DISASTERS NEW PRODUCT NEW PRODUCTS OUTPUTS PAYMENT SYSTEM PHONE NETWORK PORTFOLIO REMOTE REGIONS REPUTATION RURAL AREAS RURAL FARMERS SAVINGS SUBSISTENCE SUSTAINABLE AGRICULTURE TRANSACTION COSTS WEATHER EVENTS WEATHER INSURANCE WIND SPEED Farming is a mainstay of the Kenyan economy, representing three quarters of employment in the country. Nearly half of all farming output in the country is for subsistence purposes. Therefore, many farmers livelihoods are entirely dependent on their harvests, both for the income generated by selling crops and for feeding their families. Unfortunately, there is little certainty in subsistence farming since the size of the harvest is largely determined by the timing and amount of rainfall. The objective of this case study is to describe the design and implementation of an index-based agricultural insurance product targeting rural farmers in Kenya. The Kilimo Salama (Safe Agriculture in Kiswahili) product has been successful in protecting farmers against risks from drought or excessive rainfall, both of which can have disastrous effects on the harvest. The following sections present weather-related risks affecting farmers, the steps taken to address these problems by designing a new insurance product, the product development and implementation process, and the impact of this new product thus far. Beyond the focus on product design, this case also discusses lessons learned since the product's launch, how the product is expected to evolve in future versions, and scalability. 2015-04-02T21:30:05Z 2015-04-02T21:30:05Z 2015-03 Working Paper http://documents.worldbank.org/curated/en/2015/03/24158203/kilmo-salama-index-based-agriculture-insurance-product-design-case-study http://hdl.handle.net/10986/21682 English en_US CC BY-NC-ND 3.0 IGO http://creativecommons.org/licenses/by-nc-nd/3.0/igo/ International Finance Corporation Washington, DC Publications & Research Publications & Research :: Working Paper Africa Kenya |
| repository_type |
Digital Repository |
| institution_category |
Foreign Institution |
| institution |
Digital Repositories |
| building |
World Bank Open Knowledge Repository |
| collection |
World Bank |
| language |
English en_US |
| topic |
AGRICULTURAL INSURANCE AGRICULTURAL REGION BANKING SERVICES BANKS BARRIER CHEMICALS CLIMATE DAMAGES DEPOSIT DEVELOPING COUNTRIES DEVELOPMENT ECONOMICS DISTRIBUTION SYSTEM DROUGHT DROUGHT RISK DROUGHTS DRY SEASON EARTHQUAKES ECONOMIC PERSPECTIVE EXPOSURE FARMER FARMERS FARMING OUTPUT FINANCIAL INSTITUTIONS FINANCIAL PRODUCT FINANCIAL PRODUCTS FINANCIAL SERVICES FLOOD FORMAL BANKING FRAUD INCOME INCOMES INDEMNITY INFRASTRUCTURE REQUIREMENT INSURANCE INSURANCE COMPANY INSURANCE CONTRACTS INSURANCE COVERAGE INSURANCE INDUSTRY INSURANCE MARKET INSURANCE PREMIUM INSURANCE PRODUCT INSURANCE PRODUCTS INSURER INSURERS LACK OF INFRASTRUCTURE LOCAL FARMERS MAJORITY OF FARMERS MARGINAL COST MARKET PENETRATION MICRO-INSURANCE MICROFINANCE MOBILE BANKING MOBILE PHONE MOBILE PHONES NATURAL DISASTERS NEW PRODUCT NEW PRODUCTS OUTPUTS PAYMENT SYSTEM PHONE NETWORK PORTFOLIO REMOTE REGIONS REPUTATION RURAL AREAS RURAL FARMERS SAVINGS SUBSISTENCE SUSTAINABLE AGRICULTURE TRANSACTION COSTS WEATHER EVENTS WEATHER INSURANCE WIND SPEED |
| spellingShingle |
AGRICULTURAL INSURANCE AGRICULTURAL REGION BANKING SERVICES BANKS BARRIER CHEMICALS CLIMATE DAMAGES DEPOSIT DEVELOPING COUNTRIES DEVELOPMENT ECONOMICS DISTRIBUTION SYSTEM DROUGHT DROUGHT RISK DROUGHTS DRY SEASON EARTHQUAKES ECONOMIC PERSPECTIVE EXPOSURE FARMER FARMERS FARMING OUTPUT FINANCIAL INSTITUTIONS FINANCIAL PRODUCT FINANCIAL PRODUCTS FINANCIAL SERVICES FLOOD FORMAL BANKING FRAUD INCOME INCOMES INDEMNITY INFRASTRUCTURE REQUIREMENT INSURANCE INSURANCE COMPANY INSURANCE CONTRACTS INSURANCE COVERAGE INSURANCE INDUSTRY INSURANCE MARKET INSURANCE PREMIUM INSURANCE PRODUCT INSURANCE PRODUCTS INSURER INSURERS LACK OF INFRASTRUCTURE LOCAL FARMERS MAJORITY OF FARMERS MARGINAL COST MARKET PENETRATION MICRO-INSURANCE MICROFINANCE MOBILE BANKING MOBILE PHONE MOBILE PHONES NATURAL DISASTERS NEW PRODUCT NEW PRODUCTS OUTPUTS PAYMENT SYSTEM PHONE NETWORK PORTFOLIO REMOTE REGIONS REPUTATION RURAL AREAS RURAL FARMERS SAVINGS SUBSISTENCE SUSTAINABLE AGRICULTURE TRANSACTION COSTS WEATHER EVENTS WEATHER INSURANCE WIND SPEED International Finance Corporation Kilmo Salama - Index-based Agriculture Insurance : A Product Design Case Study |
| geographic_facet |
Africa Kenya |
| description |
Farming is a mainstay of the Kenyan
economy, representing three quarters of employment in the
country. Nearly half of all farming output in the country is
for subsistence purposes. Therefore, many farmers
livelihoods are entirely dependent on their harvests, both
for the income generated by selling crops and for feeding
their families. Unfortunately, there is little certainty in
subsistence farming since the size of the harvest is largely
determined by the timing and amount of rainfall. The
objective of this case study is to describe the design and
implementation of an index-based agricultural insurance
product targeting rural farmers in Kenya. The Kilimo Salama
(Safe Agriculture in Kiswahili) product has been successful
in protecting farmers against risks from drought or
excessive rainfall, both of which can have disastrous
effects on the harvest. The following sections present
weather-related risks affecting farmers, the steps taken to
address these problems by designing a new insurance product,
the product development and implementation process, and the
impact of this new product thus far. Beyond the focus on
product design, this case also discusses lessons learned
since the product's launch, how the product is expected to
evolve in future versions, and scalability. |
| format |
Working Paper |
| author |
International Finance Corporation |
| author_facet |
International Finance Corporation |
| author_sort |
International Finance Corporation |
| title |
Kilmo Salama - Index-based Agriculture Insurance : A Product Design Case Study |
| title_short |
Kilmo Salama - Index-based Agriculture Insurance : A Product Design Case Study |
| title_full |
Kilmo Salama - Index-based Agriculture Insurance : A Product Design Case Study |
| title_fullStr |
Kilmo Salama - Index-based Agriculture Insurance : A Product Design Case Study |
| title_full_unstemmed |
Kilmo Salama - Index-based Agriculture Insurance : A Product Design Case Study |
| title_sort |
kilmo salama - index-based agriculture insurance : a product design case study |
| publisher |
Washington, DC |
| publishDate |
2015 |
| url |
http://documents.worldbank.org/curated/en/2015/03/24158203/kilmo-salama-index-based-agriculture-insurance-product-design-case-study http://hdl.handle.net/10986/21682 |
| _version_ |
1764448969048457216 |