1 year ago
On a date
2 Aug 16’
INDEX INSURANCE AND CLIMATE RISK
The prevalence of mobile technology in East Africa is truly amazing. Want to beam a photo from your camera to your blog whilst you are in the middle of the Masai Mara? No problem. Mobile banking on the go? Done. Kilimo Salama have been making waves with the distribution of micro-insurance products in East Africa, through the mobile payment system M-PESA.
From an Insurance Perspective, Kilimo Salama, is interesting because of its use of indices to describe losses arising from drought and extreme rain events. A 2009 report by the International Research Institute for Climate and Society (IRI) provides a nice summary of the potential applications of indices in disaster management.
In his foreword in the report, Kofi Anan says it is apparent that we have the technology, the expertise and the financial resources to take on the challenge presented by climate change – but that action to tackle these problems is largely missing. It is clear that Index Insurance is a great tool to help remove the barriers to action.
With index insurance in place, governments and relief agencies can plan ahead of crises, knowing that funds will be available when they need them.
Posted 1 year ago by admin