Expansion of Ivory Coast microinsurance scheme planned after payouts to rice farmers

By Henry Gale

April 17 - (The Insurer) - More than 20,000 rice farmers in Ivory Coast received payouts from a World Food Programme-backed microinsurance scheme for the 2024 farming season, its reinsurer African Risk Capacity (ARC) said.

ARC said nearly 300 million West African CFA francs (approximately $520,000) in total had been paid to 20,714 farmers. 44,158 rice producers were insured against drought and excess rainfall under the program.

Weather conditions were generally favourable for cereal production in Ivory Coast last year but recurrent dry spells affected crop establishment and development in some regions, according to a December update from the UN's Food and Agriculture Organization.

Axa, Sanlam Allianz and Atlantique Assurances provide the parametric microinsurance coverage, with support from the World Food Programme, UN Development Programme, the Federation of Unions of Rice Producers' Cooperatives and Ivory Coast's ministry of environment and sustainable development.

In a LinkedIn post, ARC said the consortium now plans to extend the coverage to other crops such as maize, cocoa and cotton.

Drought conditions in Ivory Coast also triggered an $863,560 parametric insurance claim earlier this year, which was used to provide direct cash transfers to 8,290 households representing 41,450 people.