In less-developed countries, a single season of drought can lead to crop losses that threaten the livelihoods of tens of thousands of small farmers.
While agricultural insurance could help, most traditional policies are too expensive for farmers in these countries. Groups such as the International Fund for Agricultural Development have sought to create index-based insurance options that pay out for losses based on an independent, objective measure linked to crop yield.
But identifying that measure — finding the right trigger mechanism that recognizes the true level of risk while providing an affordable policy option — has been elusive.
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Trudy Knockless
Trudy Knockless is a reporter on ALM Media's Business of Law desk. She has a background serving legal and insurance publications. Contact her at [email protected] or on LinkedIn at Trudy Knockless.
