Ghana looks likely to be another country who will adopt the usage of index-based weather insurance as a way to help their farmers cope with the vagaries and extremes of weather faced by the west African nation. The country is seeking to boost its food security and with the help of the World Bank, who are running educational workshops on weather insurance, it may not be long till the first pilot scheme goes live.
The World Bank is running a training course in Accra, Ghana this week to educate local insurance institutions on the microinsurance options available to them. The course aims to leave the local insurers with the knowledge to design, price and implement agricultural index-based weather insurance programs.
Insurance penetration is below 2% in Ghana and there is no specific insurance support for agriculture there despite it making up 40% of the countries GDP and employing 60% of the population. Figures like that really demonstrate the impact that index-based weather insurance schemes could bring to countries like Ghana.
Index-based weather insurance is fast becoming the standard for agricultural risks cover in the developing world. The only thing holding back its adoption is the lack of education and a lack of weather stations in certain parts of the world. Once those items are overcome we expect to see index-based insurance become the norm for agricultural risks in the developing world.