The behemoth reinsurer Swiss Re (SWCEY) has embarked on a journey to insure thousands of African Farmers in 10 different nations. According to National Underwriter "Swiss Re said today it has launched a program that will provide financial protection against the risk of drought for 600,000 persons living in African villages in 10 nations. The nations are
This announcement of the Climate Adaptation Development Programme (CADP) was made at the current Clinton Global Initiative 2007 in New York. While this
program is new to Africa, Swiss Re has been "developing pioneering weather risk transfer instruments in low-income markets, starting in
The head of Swiss Re's sustainability and emerging risk management Ivo Menzinger said of the program, "CADP will contribute to develop a risk transfer market that will 'ultimately help smallholder farmers buy agricultural inputs, overcome a lack of collateral, draw upon agricultural extension services and accumulate income.'”
What are agricultural inputs? Is it information about how to farm more proficiently? Regardless it's a positive that large insurers are delving into countries that face harsh weather conditions.
I am shocked and pleasantly surprised that a large insurance company would undertake an effort on this scale, when the financial payoff is so obviously not likely to be huge. Swiss Re deserves a lot of kudos for their willingness to jump into this arena... hopefully the karma will be great! Frankly, and sadly, I'm not at all surprised that it wasn't a large, US behemoth taking the lead on this front.
Jerry
www.leads4insurance.com
Posted by: Jerry | October 2, 2007 9:28 PM | Permalink to Comment