In Mongolia livestock can be insured through an index-based livestock insurance e.g. against extremely cold weather.
Photo: @ Karl Schuler 2010

20.12.2016

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In many countries, smallholder farmers are not insured against the loss of food crops. The Swiss Agency for Development and Cooperation (SDC) is focusing on insurance-based solutions to reduce exposure to disasters, particularly for poor farmers.

There are around 500 million smallholders across the world. They cover more than half of its food demand and provide livelihoods for over two billion people. Unfortunately, rural poverty, undernourishment as well as malnourishment are also concentrated among smallholder farmers. A large proportion of these farmers are not insured against loss of food crops through drought, flooding or plant damage caused by pests or loss of livestock owing to by extreme weather, drought or diseases. Insurance-based solutions as instruments of Disaster Risk Reduction (DRR) will most likely become more important with accelerated risks created by climate change.

The Swiss Agency for Development and Cooperation (SDC) is focusing its support on these smallholder farmers. One way to reduce the risks for smallholders is to introduce micro-insurance to compensate for losses of crop yield or livestock losses. Generally, such insurance systems have to follow three criteria: They must be effective, easily available and payable, and lastly, they need to be sustainable.

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