During these Geneva meetings, the draft outputs of tools and guidelines for index insurance were presented to the broader GAN membership for feedback and application.
BASIS researchers, in partnership with leading geo-spatial software engineering firm (SI Organization), developed a potential solution to these problems by using satellite information at high resolution, coupled with better modeling approaches, to reduce basis risk and improve index insurance performance.
The TGP caused an increase in maize yields of 1 ton per hectare perhaps due to the 36 percent higher probability of using improved seeds in the treatment group compared to the control group. Although beneficiaries obtained larger yields, farmers in the control group earned larger profits.
The results from the first sales period in Mali indicated that those farmers who purchased the insurance were more likely to expand their cotton cultivation, increase use of productive inputs and increase the use of seeds.
The Borana plateau in southern Ethiopia is a vast arid and semi-arid pastoralist territory. Livestock in this area comprise the majority of household’s non-human capital and are responsible for more than two-thirds of their average income.
Pastoralist households in the arid and semi-arid areas of northern Kenya are especially vulnerable to the risk posed by climate change. This risk-reduction strategy has the effect of keeping households poorer than they need to be.
This evidence indicates that the offer of a voucher had enormous impact on take-up rates. Even relatively small subsidies, however, significantly increased up-take rates to almost 40 percent.