Microfinance and Index Insurance : Testing Business Models in the Agricultural Sector

While access to credit is a key instrument toalleviate rural poverty, microfinance institutions(MFIs) are often unable to expand their agriculturelending portfolio. One of the key advantages for microfinance institutions to offer index insurance pr...

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Main Authors:	Assah, Fatou C., Sberro-Kessler, Rachel
Format:	Brief
Language:	English en_US
Published:	World Bank, Washington, DC 2017
Subjects:	MICROFINANCE INSURANCE INDEX INSURANCE AGRICULTURAL LENDING RISKS
Online Access:	http://documents.worldbank.org/curated/en/777531490707709588/Microfinance-and-index-insurance-testing-business-models-in-the-agricultural-sector http://hdl.handle.net/10986/26341

id	okr-10986-26341
recordtype	oai_dc
spelling	okr-10986-263412021-05-25T10:54:44Z Microfinance and Index Insurance : Testing Business Models in the Agricultural Sector Assah, Fatou C. Sberro-Kessler, Rachel MICROFINANCE INSURANCE INDEX INSURANCE AGRICULTURAL LENDING RISKS While access to credit is a key instrument toalleviate rural poverty, microfinance institutions(MFIs) are often unable to expand their agriculturelending portfolio. One of the key advantages for microfinance institutions to offer index insurance products to their customersis to reduce the default risk on their agriculture lending portfolio and therefore allow the expansion of agriculture credit. Index-insurance can be sold by microfinance institutions either on a mandatory or voluntary basis.One of the key success factors of credit-bundling is to offer a holistic solution to mitigate agriculture risks. The second business model that microfinance institutions have tested is to be direct customers of index insurance. Portfolio insurance has the potential to benefit farmers both ex-post (ex: restructuring of loans, loans write-offs, offer of emergency loans) and ex-ante (ex: larger supply of agriculture credit, reduced agriculture lending interest rates). 2017-04-12T17:50:15Z 2017-04-12T17:50:15Z 2017 Brief http://documents.worldbank.org/curated/en/777531490707709588/Microfinance-and-index-insurance-testing-business-models-in-the-agricultural-sector http://hdl.handle.net/10986/26341 English en_US Global Index Insurance Facility Knowledge Notes; CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo World Bank World Bank, Washington, DC Publications & Research Publications & Research :: Brief India 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	MICROFINANCE INSURANCE INDEX INSURANCE AGRICULTURAL LENDING RISKS
spellingShingle	MICROFINANCE INSURANCE INDEX INSURANCE AGRICULTURAL LENDING RISKS Assah, Fatou C. Sberro-Kessler, Rachel Microfinance and Index Insurance : Testing Business Models in the Agricultural Sector
geographic_facet	India Kenya
relation	Global Index Insurance Facility Knowledge Notes;
description	While access to credit is a key instrument toalleviate rural poverty, microfinance institutions(MFIs) are often unable to expand their agriculturelending portfolio. One of the key advantages for microfinance institutions to offer index insurance products to their customersis to reduce the default risk on their agriculture lending portfolio and therefore allow the expansion of agriculture credit. Index-insurance can be sold by microfinance institutions either on a mandatory or voluntary basis.One of the key success factors of credit-bundling is to offer a holistic solution to mitigate agriculture risks. The second business model that microfinance institutions have tested is to be direct customers of index insurance. Portfolio insurance has the potential to benefit farmers both ex-post (ex: restructuring of loans, loans write-offs, offer of emergency loans) and ex-ante (ex: larger supply of agriculture credit, reduced agriculture lending interest rates).
format	Brief
author	Assah, Fatou C. Sberro-Kessler, Rachel
author_facet	Assah, Fatou C. Sberro-Kessler, Rachel
author_sort	Assah, Fatou C.
title	Microfinance and Index Insurance : Testing Business Models in the Agricultural Sector
title_short	Microfinance and Index Insurance : Testing Business Models in the Agricultural Sector
title_full	Microfinance and Index Insurance : Testing Business Models in the Agricultural Sector
title_fullStr	Microfinance and Index Insurance : Testing Business Models in the Agricultural Sector
title_full_unstemmed	Microfinance and Index Insurance : Testing Business Models in the Agricultural Sector
title_sort	microfinance and index insurance : testing business models in the agricultural sector
publisher	World Bank, Washington, DC
publishDate	2017
url	http://documents.worldbank.org/curated/en/777531490707709588/Microfinance-and-index-insurance-testing-business-models-in-the-agricultural-sector http://hdl.handle.net/10986/26341
_version_	1764461741201162240

Microfinance and Index Insurance : Testing Business Models in the Agricultural Sector

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