The United Nations World Food Programme has teamed up with the International Fund for Agricultural Development and the Bill & Melinda Gates Foundation to provide almost $1m in funding to support research and planning for weather index-based insurance schemes aimed at poor rural farmers.
This is great and furthers the cause of index-based mechanisms for hedging risks caused by the weather and climate but is it reaching out enough to help all those in need of weather insurance? There are many other businesses, industries and small enterprises who will not have weather risk protection in the developing world. Broadening this scheme could make a huge difference to developing nations on a much wider level. As much as rural farmers need help, so do many types of businesses who are at the mercy of the weather in areas of the world where extremes in climate take their toll on the economy.
Hopefully the proposed Weather Risk Management Facility will try to address this gap in the micro-insurance marketplace and bring weather risk insurance to the small businessman in developing nations.
Read the full press release.