MicroEnsure wins
FT Sustainable Banking Award 2009
MicroEnsure, the world's first insurance
intermediary for the poor, has won the FT Sustainable Banking Award
in Achievement in Basic Needs Financing. The awards, organised by
the Financial Times and IFC, a member of the World Bank Group, were
announced at a ceremony in London on 4 June attended by more than
250 senior bankers and decision makers in the field of
sustainability.
MicroEnsure was selected from 165 entries from 117 institutions
in 42 countries entered in five award categories. The judges in the
Achievement in Basic Needs Financing category were looking for
innovative programmes with significant social, environmental, and
financial benefits that can be replicated in the developing
world.
The MicroEnsure submission was based on its pioneering
development of weather index crop insurance in sub-Saharan Africa
and Asia. 70% of the global poor are rural and agriculture is a
mainstay of rural livelihoods. Smallholder farmers in the
developing world often find it difficult or impossible to access
credit because lenders view them as too high risk. Weather index
crop insurance provides a safety net that protects farmers from the
financial risks associated with adverse weather conditions such as
drought, excess water, or even typhoons. But it has the benefit of
enabling secure extension of credit for the purchase of quality
farm inputs such as drought-resistant seed and fertilizer.
The mechanism is very simple, easy to administer, and has an
automatic payout process that makes it appropriate and affordable
for poor farmers. With improved farm inputs, farmers achieve higher
yields, often 200% plus, higher incomes, diversification into cash
crops, and non-crop revenue streams.
There are also social benefits including higher living
standards, opportunities for saving, and better education.
MicroEnsure has piloted crop insurance schemes in Malawi, Tanzania,
Rwanda, India, and the Philippines, covering a variety of crops
including rice, maize, and tomatoes. The aim now is to continue
geographical expansion, cover a wider range of crops, and achieve
significant global scale.
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For further information, contact Peter
Lomas
Tel: 01242 526836