Project Micro-insurance & disaster risk reduction: challenges and opportunities in the context of climate change

theme: What role for social protection?

The purpose of this study was to provide an overview of potential Christian Aid interest in crop/weather micro-insurance as well as partners’ involvement in micro-insurance related products and services, and of today’s experience as documented by other actors. The final aim was to outline a position on micro-insurance compatible to Christian Aid’s ways of working, and make specific recommendations for the DRR Unit.

Project particulars

Co-ordinator: Rachele Pierro, Christian Aid UK

Researchers: Rachele Pierro, Christian Aid UK

Duration: Completed, 2007

Funders: Christian Aid UK

 

Project overview

This piece of research aimed to:

  • Provide an overview of Christian Aid partners’ involvement in micro-credit and insurance-related products and services.

  • Provide a summary of today’s experience as documented by other actors, including government and non-governmental organisations.

  • Outline a position on micro-insurance compatible to Christian Aid’s ways of working.

  • Make specific recommendations for the Disaster Risk Reduction Unit on how to take forward work on micro-insurance, including further research.

Key research findings

The majority of respondents believed crop/weather insurance would help poor farmers in managing weather risks. New index-based insurance models appear to be a promising tool offering potential protection to both landless and non-farmer poor. However more pilot projects and more research are necessary before any further involvement can be considered. Findings point towards two viable options for Christian Aid in reference to crop/weather micro-insurance provision:

The first option is to advocate both directly and through partners, for governments and commercial providers to make micro-insurance schemes available to low income individual.

The second option would be for CA to become part of a pool of NGOs that would be interested in piloting a micro-insurance approach ensuring in this way that the scale of the approach is sufficiently big to demonstrate benefits and sustainability in the long run.