Home
This Title All WIREs
WIREs RSS Feed
How to cite this WIREs title:
WIREs Clim Change
Impact Factor: 7.057

Micro‐insurance for local adaptation

Full article on Wiley Online Library:   HTML PDF

Can't access this content? Tell your librarian.

Abstract Insurance instruments that provide economic security against droughts, floods, tropical cyclones and other weather extremes have emerged as an opportunity for developing countries in their concurrent efforts to reduce their vulnerability to weather variability and adapt to climate change. Yet, issues remain concerning the viability of insurance systems serving the most vulnerable and their potential role in an adaptation regime. Many pilot projects are underway, that can inform debate on these issues. This discussion builds on a recent drought micro‐insurance project for subsistence farmers in Malawi, which by enabling farmers to access higher yield seeds, raises their productivity and decreases their vulnerability to climate change. Beyond this ‘developmental’ gain from insurance we show that micro‐insurance in Malawi can directly promote adaptation by actually reducing crop losses from drought. This is possible by incorporating seasonal rainfall forecasts, which are strongly related to El Niño‐Southern Oscillation (ENSO), into insurance pricing. This paper describes the Malawi pilot program, its challenges after the first operational year and the potential benefits of ENSO‐based pricing. The paper concludes by discussing the outlook for micro‐insurance in the emerging climate. Copyright © 2010 John Wiley & Sons, Ltd. This article is categorized under: Climate and Development > Knowledge and Action in Development

The pilot regions in Malawi: (1) Kasungu, (2) Nkhotakota, (3) Lilongwe, and (4) Chitedze depicted on a map of missing food entitlements in Malawi during the first pilot season.10.

[ Normal View | Magnified View ]

Browse by Topic

Climate and Development > Knowledge and Action in Development

Access to this WIREs title is by subscription only.

Recommend to Your
Librarian Now!

The latest WIREs articles in your inbox

Sign Up for Article Alerts