Agriculture, Microinsurance, and Rural Development

Discussing the potential of agriculture insurance for smallholder farmers

This paper analyzes the role of agriculture microinsurance in a broader rural development setting. It explores the role insurance products could play within the landscape of constraints smallholders typically face. It states that agricultural microinsurance can impact farmers by providing protection against setbacks due to crop losses and by enabling them to engage in riskier but more lucrative farm activities. The paper covers:

  • Introduction to parametric crop insurance products, the challenges in implementation of such products, and potential solutions to these challenges;
  • Mapping of the constraints typically faced by smallholders with a focus on main constraints, how they are related to each other, and potential intervention strategies;
  • Specific role that agriculture microinsurance can play and identification of the conditions under which well-structured and valuable insurance may really make a significant contribution to enable smallholders to stabilize their income and eventually increase their production;
  • Findings of the study and recommendations to develop holistic agriculture insurance models specifically for smallholders.

About this Publication

By Muller, S., Ramm, G. , Steinmann, R.