Feasibility of agricultural micro insurance in Cambodia

Achmea has requested CDI to provide advice regarding the feasibility of agricultural micro insurance in Cambodia. Achmea has been partnering with HealthNetTPO to provide health insurance services in Cambodia, and is considering extending insurance services to the agricultural sector.

In order to make a substantiated go-no go decision about entering into agricultural micro insurance, more information is needed in three fields:

  • What are the risks that Cambodian farmers deal with?
  • What are needs expressed by Cambodian farmers regarding the management of their risks?
  • What is the existing infrastructure in Cambodian target areas which can help/hinder delivery of agricultural micro insurance products?

Quick scan and synthesis missions

A one-week quick scan mission was conducted to start formulating provisional answers to the three questions above. The mission can also be used to prepare the ground for further investigations and/or decision making later in the trajectory.

Depending on the outcome of the quick scan, several specific actions can be taken in order to answer the three above-mentioned questions. Assuming that not all information will be readily available during the quick scan mission, a synthesis mission can be planned two months later, with preparatory data collection performed by a Cambodian consultant.

The focus for such a synthesis mission depends on the outcome of the quick scan, but could include:

  • A field research (based on qualitative interviews and focus groups) to answer question 2;
  • A further exploration of a technical areas. This could range from fact-finding about available weather measurement tools and other geo-spatial data, looking at livestock insurance or crop insurance, or looking at ways to strengthen prevention mechanisms at family/farm level.