Weather Index Based Crop Insurance Project
The object of the project is to contribute to food security in Sri Lanka by developing index-based insurance products for food crops. It is expected to further develop the market for Index-based insurance by adding new geographies for the paddy index insurance by designing Index-based insurance for crops other than paddy. Sanasa Insurance Company Limited will implement this project with 50% of the project budget supported by IFC’s Global Index Insurance Facilities (GIIF).
The Project is an Advisory Services project supported by a performance based grant that uses an incentive mechanism to support the implementation of multiple weather index-based insurance products for food crops (including paddy) in Sri Lanka and expansion of reach of all index insurance offerings of the Grantee to additional geographies in Sri Lanka. The Project will address these issues through a performance based approach to support the development of index-based micro-insurance, including developing and implementing an affordable and sustainable index insurance product for flood and drought risks. The performance based approach supports SANASA to design new and affordable index based insurance products and to develop a local market and capacity to support weather index insurance in addition to the support given to work with a Technical Partner to scale up agricultural index insurance into a commercially viable and sustainable product.
Project Objectives
- Expand Sanasa’s crop insurance offer to different crops and to further develop the market for Index-based insurance by adding new geographies for Paddy.
- Capacity Development by providing targeted technical assistance to local underwriters on the design and implementation of Index – based insurance products.
- Develop Weather index-Based insurance products that are climate responsive and cater to diverse food crops in Sri Lanka.
- Assist in developing the institutional capacity of SANASA to be able to effectively design and underwrite weather index-based insurance products.
- Raise awareness amongst 50,000 Sri Lankan Farmers on the availability of the developed weather index-based insurance products and their benefits.