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writing exercise: Farmers get insurance payout without loss assessment

This is an exercise written on the writing training under regional grant in Yunnan, China from Oct 12-14. Thanks to the comments from Denise. Very pertinent!

Hope visitors will see the comment. You will benefit from it!

Field loss assessment on crops losses are not necessary for insured farmers anymore. Farmers in Anhui province hit by 2011 summer drought received over 230 thousand RMB, in record time, thanks to an innovative insurance product introduced to farmers by International Fund for Agricultural Development (IFAD)  and World Food Programme (WFP).

The conventional way to identify crop loss after a disaster is to do costly and time consuming loss assessments. Staff from the insurance company has to go to the field to assess the losses. The  challenges  are even bigger in China  due to the small plot size of individual farms.

Farmers supported by IFAD and WFP now have access to a new insurance product. The product, called the weather index agriculture insurance, uses weather data collected in weather stations to calculate payouts. As there is a strong correlation of weather to crop yield, weather data becomes the proxy  for yield. Therefore, the payout can be easily calculated based on the weather data.

The advantage of this product includes rapid payout, transparency and saving of staff labour.

The project is only in a pilot stage, but has already demonstrated its feasibility both to insurance companies and farmers. “ I am very happy  receiving the payout in such a short time. Now the investment for the next crops season is guaranteed. “  Farmers Zhou told us.

 

Contact information: Weijing Wang, IFAD China  Weijing.wang@wfp.org

 

Genereal Comment – you might want to mention the project name, and put in a quote from a farmer. If you have a picture of a farmer, you can put the quote as the caption of the picture. This will also bring some  ‘human interest’ into the article. If it is for IFAD, you might want to add contact details at the end, or a link to the project website.

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