News

WFP, IFAD Contribute to Weather-Indexed Insurance Schemes for Developing Country Farmers

Flood ordeal for Palestinians stuck on Iraq-Syria border 17 November 2008: The UN World Food Programme (WFP) and the

International Fund for Agricultural Development (IFAD), supported by the

Melinda and Bill Gates Foundation, are launching a programme to increase access

by farmers in developing countries to weather-indexed insurance schemes.

These

schemes provide securities against extreme weather events such as droughts,

heavy rainfall and storms, which threaten the livelihoods of many farmers in

poor countries. Payments under weather-indexed insurance schemes are triggered

by pre-defined and independently-verifiable indices tracking events such as

lack of rainfall during critical crop-growing periods.

Under the programme, the

Gates Foundation will provide close to US$1 million to assess ongoing

initiatives, identify key success factors and promote the expansion of suitable

insurance schemes into areas particularly prone to extreme weather events.

Under the lead of WFD and IFAD, a number of strategic partners, including the

World Meteorological Organization, will collaborate to address the main

challenges of providing index-based insurance to framers.

The programme also

seeks to develop a strategy for a joint Weather Risk Management Facility that

would build the capacity of public and private entities in weather insurance,

and develop and test delivery models for index insurance relevant to rural

smallholders. [IFAD Press

Release] [WFP

Press Release] [UN

Press Release]