Researchers, insurance brokers, insurance companies, banks, donors, ministry of agriculture and non-governmental organizations participated in a workshop this week to discuss index insurance for agriculture in Ethiopia.
Three projects of the Index Insurance Innovation Initiative (I4) hosted by the Food and Agriculture Organization (FAO), the international Food Policy Research Institute (IFPRI) and the International Livestock Research Institute (ILRI) shared their research practices, experiences and challenges. Participants explored opportunities for improved weather index insurance in Ethiopia and the way to move forward.
The presenters highlighted that weather remains a major source of risk to rural livelihoods in Ethiopia. Uninsured risk can drive people into poverty and destitution, especially those in low-wealth agricultural and pastoralist households. Speakers also indicated that weather index insurance holds much potential as one means by which the link between risk and poverty can be broken.
Following the presentations, participants formed groups to discuss four topics: Finance, insurance, government, and non-governmental organizations. Key issues emerging were the lack of coordination and partnerships, a lack of data, awareness and understanding, the lack of good policy, the need for capacity building, and potential for improved linkages among the government and private sectors.