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Holistic approach to agriculture insurance key to seeking solutions for smallholder farmers

Source: Asia Insurance Review | Dec 2017

Global Microinsurance

The importance of strong coordination among industry and supervisory bodies as well as aggregators involved in the provision of agriculture insurance was emphasised by forum panellists at the 11th Consultative Forum in Lima, Peru last month, where over 60 high-ranking representatives, from South and Central America, Africa and Asia, from the insurance industry and regulatory and supervisory bodies attended. 
 
   The 11th Consultative Forum was co-organised by the Microinsurance Network, the Access to Insurance Initiative (A2ii) and the International Association of Insurance Supervisors (IAIS). It took place as a pre-conference event of the 13th International Microinsurance Conference (IMC), co-organised by the Munich Re Foundation and Microinsurance Network, and hosted by APESEG. The Forum was the last of three events focusing on this topic in 2017, building on the 9th Consultative Forum, held in Singapore in March, and the 10th Consultative Forum, held in Uganda in May. 
 
Clear communication with consumers important
“Agriculture is of vital importance for poverty reduction and economic growth, particularly in developing countries. It contributes to food security and nutrition, plays an important role in income and employment, especially in rural areas, contributes to GDP and also to the global food supply”, explained Mr Francesco Rispoli, Senior Technical Specialist at the International Fund for Agricultural Development and Board Member of the Microinsurance Network, setting the scene during the opening session.
 
   Discussions at the forum also underlined the importance of technology (including the use of satellite data and the reliance on scientific agencies for product development, supporting the establishment of agile claims payment processes), of the role of supervisors and the industry in educating consumers and creating consumer awareness, and the need for training for those involved in the different processes, including the sales force. 
 
   One of the key messages that emerged from the discussions was the need for clear communication with consumers as a part of consumer protection efforts. 
 
   For those wishing to know more, reports on the 11th Consultative Forum were posted on social media under the hashtag #11thCF. The recording of the Forum is available in English at http://liveredmedia.com/cfperu/en/index.html A 
 
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