PARTNER PROFILES PlaNet GUARANTEE Benin, Burkina Faso, Mali, Senegal GLOBAL INDEX I N S U R A N C E FA C I L I T Y FUNDED BY PARTNER PROFILES Country Benin Market launch 2013 Clients 1,099 (2014) Partners Insurers: AMAB Reinsurers: Swiss Re Delivery Channels: MFIs, MFI Network Product design: EARS Products Weather satellite-based index insurance (maize and cotton) Insured Perils Drought Total Insurance Portfolio $134,056 (2014) Insurance Payouts $2,223 (2013) Average Cost of Insurance 10.6 % and 12% of value of insured inputs Development Impact No data available yet Background The project started in Benin in 2012. Awareness-raising sessions were held by the GEA for clients of FECECAM. Despite huge interest for the product there were no sales in 2012 due to the non-timely authorization of the index product by the DNA. Project Description PlaNet Guarantee has designed three drought index products in partnership with EARS: early maize, late maize and cotton. The products are insured by AMAB. Success Factors The project’s success will depend on the partnership with the national insurance company and the dedication to provide agricultural insurance in Benin. Challenges Despite all efforts, training provided for AMAB and the regulator; research of reinsurance capacities for all the crop insurance contracts of AMAB; campaign awareness activities among the farmers on a large scale, the launch of the campaign was very much below the expectations. This is often the case in the first year of a pilot. Opportunities PG is partnering with the largest MFI in Benin, with a large network of branches throughout the country, and PG is strengthening its partnership with AMAB (insurer) for the next campaign. Contacts Sebastien Weber: sweber@planetguarantee.org Country Burkina Faso Market launch 2011 Clients 8,281(2014) Partners Insurers: Allianz Reinsurers: Swiss Re, Africa Re, Cica Re, Hannover Re Delivery Channels: Agribusiness Product design: EARS (maize), I4 (cotton) Products Satellite-based weather index insurance (maize), area yield index insurance (cotton) Insured Perils Drought, decrease in yield Total Insurance Portfolio $672,609 (2014) Insurance Payouts $960 (2013, maize) Average Cost of Insurance 10.8% of value of insured inputs (maize), 11,200 FCFA / ha (cotton) 2 | G L O B A L I N D E X I N S U R A N C E FA C I L I T Y Development Impact No data available yet. Background PG activities in Burkina Faso started in 2010 with funding from AECF. Project Description PlaNet Guarantee has designed three index insurance products: satellite index insurance for early maize and late maize in partnership with EARS and average yield index insurance for cotton in partnership with I4. The product is insured by Allianz Burkina Faso. The average yield index product was piloted for the first time this year. The claims will be settled for the average yield index beginning of 2014 Success Factors The variety of distribution channels that support the pilot are the key to the project’s success – microfinance institutions (MFIs), banks, agro-dealers, and cooperatives. Secondly, developing a product for cotton was important as it is a more profitable crop (average hectares cultivated are greater among cotton growers). Thirdly, PG has developed a strong partnership with the Ministry of Agriculture that will support the scaling-up in Burkina Faso. Challenges Agriculture in Burkina Faso is relatively under-financed. Banks and large MFIs are reluctant to finance agriculture through small MFIs and cooperatives. Input loans are usually disbursed too late for the planting season leading to a late sowing phase for farmers and higher risk exposure. Opportunities The cotton sector is quite large in Burkina Faso and offers a potential 200,000 insurable farmers. Contacts Sebastien Weber: sweber@planetguarantee.org Country Mali Market launch 2011 Clients 17,481 (2014) Partners Insurers: Allianz Reinsurers: Swiss Re, Africa Re, Cica Re Delivery Channels: Cooperatives, MFIs Product Design: EARS Products Satellite-based weather index insurance Insured Perils Drought (maize) Total Insurance Portfolio $2.5 million (2014) Insurance Payouts $7,615 (2013) Average Cost of Insurance 11.5% of value of insured inputs Development Impact No data available yet Background PG activities in Mali started in 2010 based on funding from AECF (Africa Enterprise Challenge Fund) and ILO (Microinsurance Innovation Facility). Project Description PlaNet Guarantee has designed three drought index products in partnership with EARS for early maize and late maize. The product is insured by Allianz Mali. Success Factors PG is partnering with a large and highly committed cooperative that pays the premiums on behalf of its members. Challenges Mali has been facing until recently a severe political and financial crisis with the current conflict in the North. Banks and microfinance institutions are running out of cash, and agricultural financing is scarce. Opportunities The potential of scaling up with the actual partners is quite high. The predicted upcoming stability should bring back business, investors and donors. Contacts Sebastien Weber: sweber@planetguarantee.org | 3 PARTNER PROFILES Country Senegal Market launch 2012 Clients 4,035 (2014) Partners Insurers: CNAAS Reinsurers: Swiss Re, Delivery Channels: MFIs, Cooperatives Product design: CIRAD Products Weather station-based index insurance (maize, groundnut) Insured Perils Drought Total Insurance Portfolio $458,304 (2014) Insurance Payouts $31,215 (2013) Average Cost of Insurance 5.17% to 13.5% of value of insured inputs Development Impact No data available yet. Background PG activities started in 2012 with weather station-based index insurance (maize, groundnut). Nevertheless the first year the price of the product was very high, and few farmers bought the product. The product was reviewed with farmers’ organizations, and CIRAD, in 2013. Project Description The index insurance product covers maize and groundnut against drought. It was designed in partnership with CIRAD, based on rainfall data collected by the Met services via 33 automatic rain gauges purchased by USAID and the World Bank. The product is insured by CNAAS. Success Factors The index product has been tested and accordingly adjusted and adapted to meet the demand and needs of the farmers in Senegal. Challenges It is difficult to scale up weather station-based index insurance because of the costs involved in installing a network of weather stations. Opportunities There is strong commitment from the farmers’ organization (Asprodeb) in the conception of the product and its marketing. There is also good potential for scaling up through large microfinance institutions, banks, farmers’ organizations and agri-businesses. Contacts Sebastien Weber: sweber@planetguarantee.org 4 |