Innovation in Insurance: Managing the Risky Business of Weather

On March 29-30, 2017, the Chicago Council on Global Affairs will host the Global Food Security Symposium in Washington, D.C. IFPRI has been helping design and evaluate index insurance products to aid farmers in mitigating the impact and managing the risks associated with severe weather and crop loss.

Index-Based Weather Insurance in Ethiopia

In Ethiopia in 2009, IFPRI researchers saw the promise in an innovative index-based weather insurance plan—which automatically delivered payments to farmers when the local rainfall index fell below a certain level, thereby avoiding any costly estimation of potential yield losses.