The Start Network, an international network of Non-Governmental Organisations (NGO), has announced the launch of a new parametric insurance product designed to protect individuals in Senegal affected by drought.
The product, due to be introduced for the 2018-2019 agricultural season, will trigger payouts when rainfall levels fall below a certain threshold. Policy payments will be made in November, towards the latter half of the 2018 growing season.
“We are delighted to have signed the insurance policy. This is a potential game-changer for the sector. Slow aid funding is one of the biggest structural problems in disaster response efforts, and this costs lives,” explained Emily Montier, Start Labs Manager.
Run in partnership with the Government of Senegal and the African Risk Capacity (ARC) the pilot is funded by the German Federal Ministry for Economic Cooperation and Development (BMZ) through the German Development Bank, Kreditanstalt für Wiederaufbau (KfW).
“Many developing countries face the risk of natural disasters without being sufficiently prepared,” said Veronika Bertram-Hümmer, KfW Project Manager.
In the most severe drought, with the largest payout, the product could provide more than 200,000 people with cash interventions, with even more people helped through nutrition or agricultural projects.
“We are very pleased to finance ARC Replica as an initiative which builds up processes, structures and capacities within NGOs to purchase ARC’s drought insurance which improves preparedness and financing in case of a disaster to better help the people in need,” added Bertram-Hümmer.