One World to Protect
Crop
Health and Life
Insurance
Engineering and
Services
 Technical assistance
 Feasibility and Market Studies
 Risk ana...
I. Overview of PlaNet Guarantee
b. Organization and key figures
100% 100% 100%
International
PlaNet Guarantee
Senegal
PlaN...
Variability in
agricultural
seasons and
extreme climatic
events
Agricultural insurance indispensable to protect farmers an...
 Index insurance is more adapted
to the emerging economy
contexts than is traditional
insurance
 Insurance which pays ou...
6
PlaNet Gurantee’s insurance solutions mitigate the impact of climate events for all players in the value
chain
Insurance...
7
Overall Objective:
 By protecting the portfolio of banks and microfinance institutions, insurance secures the access to...
A farmer buys
inputs from an agri-
dealer or takes out
a loan from an
MFI/bank
The premium is
included in the
price of the...
Product Design Training
Distribution Awareness raising
III. Assurance Récolte Sahel
C. Activities – Main Activities
 Before the start of the Assurance Récolte Sahel project by PlaNet Guarantee there was no existing initiative dedicated t...
Types of indexes developed
 Maize / rainfall deficit index based on satellite information (RE)
 Developed with EARS. 600...
Types of indexes developed:
 Maïze / rainfall deficit index based on satellite information (RE).
Developed with EARS. 600...
Types of indexes developed:
 Maize, groundut, Millet / 3 rainfall deficit indexes developed with CIRAD and based on rainf...
Exploratory missions on cocoa and cotton
 In cocoa, risks mainly linked to illness. Average age of producers and of plant...
Interview of Nimna Diayite, president of maize producers
cooperative (FEPROMAS), Senegal, 2013.
How would you qualify your...
Thank you!
PlaNet Guarantee
111 Boulevard Pereire
75017 Paris France
Anaar Kara
R&D Director
PlaNet Guarantee
akara@planet...
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One World to Protect, PlaNet Guarantee

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EMW2015; Anaar Kara; PlaNet Guarantee

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One World to Protect, PlaNet Guarantee

  1. 1. One World to Protect
  2. 2. Crop Health and Life Insurance Engineering and Services  Technical assistance  Feasibility and Market Studies  Risk analysis and definition of guarantees  Product development  Micro-reinsurance brokerage Products Key Success Factors  Innovative products  Products tailored to needs and elaborated with the clients and end beneficiaries  Simplicity in implementation and management  Strong partnerships with leading insurers and reinsurers  Product development  Micro-reinsurance brokerage Vision The objective of PlaNet Guarantee is to enable populations excluded from traditional insurance systems and not benefitting from social protection mechanisms to protect themselves against all types of risks: health, natural catastrophe, death, disability, accident,… I. Overview of PlaNet Guarantee a. Vision As an insurance broker, PlaNet Guarantee has developed a tailored social insurance offer and proposes a range of services in technical assitance and risk analysis.
  3. 3. I. Overview of PlaNet Guarantee b. Organization and key figures 100% 100% 100% International PlaNet Guarantee Senegal PlaNet Guarantee Burkina Faso PlaNet Guarantee Mali PlaNet Guarantee Ivory Coast 100% 70%10% 20% INTRODUCTION • Broker and advisor specialized in inclusive insurance and social protection since 2007 • Development of insurance products for people excluded from the conventional insurance system • Design and implementation of technological solutions to push the boundaries of accessibility of insurance • Growth sustained by breakthrough innovations in insurance and microinsurance with the use of index technologies and social networks KEY FIGURES • Headcount: 30 • Ongoing activities in 12 countries => Fully licensed broker in 4 countries: Burkina Faso, Ivory Coast, Mali and Senegal (Benin in progress) • 900,000 cumulated policies since 2008 representing 4 million beneficiaries • 200,000 policies in 2014 via 50 insured groups in West Africa • Headquartered in France with 1 operational platform based in Dakar employing 10 people ORGANIZATION
  4. 4. Variability in agricultural seasons and extreme climatic events Agricultural insurance indispensable to protect farmers and strengthen the agricultural sector: • By protecting the portfolio of banks and microfinance institutions, insurance secures the access to credit and allows to increase the development of agricultural activities. • By increasing access to credit and securing the financial sector , agricultural insurance can attract more financing into the sectors(funds invest in banks /MFIs). Food insecurity Revenue Losses Excluded from contracting another credit Barrier to investing in better quality seeds and equipment Increased risk of bad harvests Farmers forced to dip into their savings to sustain themselves Inability to pay back the credit II. Overview of index insurance a. Why Crop Insurance The problem faced by farmers:
  5. 5.  Index insurance is more adapted to the emerging economy contexts than is traditional insurance  Insurance which pays out in function of individual risk is not feasible – administration costs and moral hazard Index Insurance:  Indemnity on the basis of attaining a certain trigger level of reference  Types of indexes: average yield or climate Indexes (rain, temperature, wind, etc.)  Data sources: Satellite, yields, Weather Stations BENEFITS OF INDEX INSURANCE  Lower costs = lower premiums  Coverage of the hardest risks to manage  Decrease of moral hazard and adverse selection  Possibility to adapt the cost of insurance to purchasing power of producers  Automatic claims payout II. Overview of index insurance b. What is index Insurance
  6. 6. 6 PlaNet Gurantee’s insurance solutions mitigate the impact of climate events for all players in the value chain Insurance mitigates the impact of climate events and secures future production... ...stabilizing income in the whole agriculture value chain Droughts Floods Temperature Y-1 Y0 Y1 Y2 Y3 Revenue Not insured Revenue Insured Insurance coverage Level of Production & Revenue Farmers Stabilized income  Improved food security  Secured future production (seed purchase)  Secured financing options (stable income) Banks & MFIs Reduced Risk in the Portfolio  Reduced write-offs & recovery costs  Extended lending business Agriculture Businesses (seeds, fertilizers) Stabilized Demand/ Revenues  Stabilized sales to farmers  Hedged revenue decline  Grown customer base (subsidising insurance of farmers) Production Companies (millers, cotton companies...) Stabilized Supply/ Costs  Stabilized supply (decreased duration of downturn)  Hedged costs of climate events  Grown supplier base (subsidising insurance of farmers) II. Overview of index insurance C. Positive Value Chain Impact
  7. 7. 7 Overall Objective:  By protecting the portfolio of banks and microfinance institutions, insurance secures the access to credit and allows to increase the development of agricultural activities.  Moreover, by increasing access to credit and securing the financial sector the projects contributes to growth of the overall agricultural sector. Specific Objectives:  Propose agricultural insurance solutions adapted to the needs of farmers  Develop a viable agricultural insurance model  Improve the financing of agriculture in the targeted countries  Develop insurance culture amongst the population of farmers Favor access of farmers to insurance in order to reduce the fluctuation in agricultural income and secure the financing mechanism of agriculture III. Assurance Récolte Sahel a. Overview - Objectives
  8. 8. A farmer buys inputs from an agri- dealer or takes out a loan from an MFI/bank The premium is included in the price of the inputs or the loan The premium is collected at the time of loan contraction and transferred to the insurer by the distribution channel A list of all the adherents is transferred to PG who manages the process In times of poor harvest, the index is automatically triggered based on weather or yield conditions The insurer pays out to the insured parties Management of the entire process done by PlaNet Guarantee III. Assurance Récolte Sahel b. Example of How it Works
  9. 9. Product Design Training Distribution Awareness raising III. Assurance Récolte Sahel C. Activities – Main Activities
  10. 10.  Before the start of the Assurance Récolte Sahel project by PlaNet Guarantee there was no existing initiative dedicated to index crop insurance in Francophone West Africa.  PlaNet Guarantee undertook the task of raising awareness on insurance in general and index insurance more particularly  Awareness campaigns and training were run amongst farmers, distribution networks, local insurers, insurance regulators, governments etc. III. Assurance Récolte Sahel C. Activities - Raising Awareness Examples
  11. 11. Types of indexes developed  Maize / rainfall deficit index based on satellite information (RE)  Developed with EARS. 6000 villages covered Distribution on-going.  Cotton / rainfall deficit index based on satellite information (RE) In development. 150 villages covered. Main distribution Partners  COPROCUMA Mali-Sud 3 (Agricultural cooperative), BIM-SA (Commercial bank, subsiduary of Attijariwafa bank group), Compagnie Malienne pour le Développement du Textile (CMDT_UNSCPC), Soro Yiriwaso – (MFI) III. Assurance Récolte Sahel d. Country Overview - Mali
  12. 12. Types of indexes developed:  Maïze / rainfall deficit index based on satellite information (RE). Developed with EARS. 6000 villages covered Distribution on-going.  Coton SOFITEX / average yield index being developed with I4. Potential to cover 1500 cooperatives  Coton SN CITEC / rainfall deficit index based on satellite information (RE) in development. 12 zones covered. Main Distribution Partners: Union Nationale des Producteurs de Coton / SOFITEX / Ecobank, Société Nouvelle Huilerie and Savonnerie CITEC, Ecobank Burkina Faso, Réseau des Caisses Populaires du Burkina (RCPB - Leading MFI with almost 80% of market) Other partners : small MFIs (APFI, MFP, URCCOM), cooperatives (FEPAB, Impact Ecologie) and input distributor (Agrodia). II. Assurance Récolte Sahel d. Country Overview – Burkina Faso
  13. 13. Types of indexes developed:  Maize, groundut, Millet / 3 rainfall deficit indexes developed with CIRAD and based on rainfall measured through a network of 50 weather stations  After 2 years of follow-up of the index by field visits, ANACIM develops this year a GPRS data transmission mechanism. The collaboration project with USAID and the World Bank provides each year to expand the coverage area by installing new weather stations Main distribution Partners:  CCPA et RNCPS. Rural coopeartives – groundnut producers, FEPROMAS (Rural cooperative – maize producers), Caisse Nationale de Crédit Agricole du Sénégal (CNCAS A main financial institution), ACEP and PAMECAS (MFIs active in input financing)  The partnership developed with the project " R4 Rural Resilience Initiative in Senegal " initiated by OXFAM is the first opportunity for the ARS Dakar platform for the management of an insurance portfolio developed outside the PlaNet Guarantee program. III. Assurance Récolte Sahel d. Country Overview - Senegal
  14. 14. Exploratory missions on cocoa and cotton  In cocoa, risks mainly linked to illness. Average age of producers and of plantations is high  Cotton sector represents a strong potential  Large agribusiness interested in meso approach to insurance PlaNet Guarantee initiative on social Protection for farmers  Large agribusinesses, growingly concerned with the well-being of their farmer networks, are ready to participate in the development of health insurance and social protection for their farmers  PlaNet Guarantee is working on a PPP model to cover major health risks and favour the development of the health care network III. Assurance Récolte Sahel d. Country Overview – Côte d’Ivoire
  15. 15. Interview of Nimna Diayite, president of maize producers cooperative (FEPROMAS), Senegal, 2013. How would you qualify your collaboration with PlaNet Guarantee?  Our partnership with PlaNet Guarantee since 2012 has been really positive and we hope to strengthen it in the upcoming years. We have been for a long time in search of a way to protect ourselves against the risk of bad harvest due to climate hazard, and PlaNet Guarantee brought us the index insurance solution. What is the added value of the 4970 dollars your cooperative received as payout from PlaNet Guarantee?  This compensation has been really useful; it allowed us to repay the credit to the bank and save some money that will serve for other useful purposes. We hope this initiative will be extended to farmers that couldn’t benefit from it this year. Before the start of the ARS project by PlaNet Guarantee there was no existing initiative dedicated to index crop insurance. III. Assurance Récolte Sahel e. Partners - Client Testimony
  16. 16. Thank you! PlaNet Guarantee 111 Boulevard Pereire 75017 Paris France Anaar Kara R&D Director PlaNet Guarantee akara@planetguarantee.org ………………………… Mob : +33 (0)6.66.02.89.25

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