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Creating Pathways Out of Poverty in Rural Areas: Managing Weather Risk with Index Insurance

Published by:
Document
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Publication date
25/07/2012
Number of Pages
4
Language:
English
Type of Publication:
Working Papers & Briefs
Focus Region:
Global
Focus Topic:
Climate / Weather / Environment
Type of Risk:
Weather & Climate related
Type of Risk Managment Option:
Risk transfer
Commodity:
Other
Author
International Fund for Agricultural Development (IFAD), World Food Programme (WFP)
Organization
International Fund for Agricultural Development (IFAD)

This brochure details the operations of  the International Fund for Agricultural Development (IFAD) and the World Food Program’s (WFP) operations in weather risk management through index insurance. The two organizations have joined forces to reduce the vulnerability of poor rural people to extreme weather events that can be devastating to agricultural productivity. With support from the Bill and Melinda Gates Foundation, IFAD and WFP are working to improve the access of poor rural people in developing countries to index-based weather insurance. This type of insurance can help them cope better when extreme weather hits, and can open the door to other financial services, in particular credit.