The African insurance market is currently in a phase of development. Due to the growth in demand for food crops and higher prices, it has become attractive for lenders and insurers to invest in Africa. With an insurance policy against failed harvests, poor farmers can spread their operating risk.
‘It cuts both ways’, explains LEI Wageningen UR researcher Marcel van Asseldonk in Wageningen World. Van Asseldonk studied whether insurance is a viable proposition and what the consequences of insurance policies are. Do poor farmers really benefit? Does their production increase? And what are the risks for insurers?
Read more in Wageningen World magazine.