Thursday, October 1, 2015
The Joint GIIF-GAN Knowledge Sharing Forum “Assessing value from index insurance products” was organized by the Global Index Insurance Facility of the World Bank Group, USAID and Impact Insurance Facility of ILO in the morning of 16 September in Pacifica Headquarters in Paris.
The client value of the cotton insurance project in Burkina Faso, implemented by PlaNet Guarantee, was assessed using 2 methodologies based on a double trigger approach. The scheme works on the average yield approach of the Group of Cotton Producers (GCP) and the yield of the neighbouring GCP in order to avoid all situations of moral hazard. The first methodology focuses on assessing the value of the product and the cost of insurance, while the second methodology focuses on access and experience in claims processing and procedures. Following the presentations, a session of brainstorming on the indicators of the client value assessment framework took place.
Burkina Faso has a well-developed cotton sector and a structured cotton value chain. In 2015, more than 500 Groups of cotton producers (GCP) were insured (7538 farmers) by the project. The end benefit for farmers of such an insurance product is to remain in the business the following year with an increase in inputs such as land area. According to PlaNet Guarantee, there is potential for a total of 200,000 cotton farmers to be insured in Burkina Faso.
To read more about the project click here