PublicationBusiness model innovation: Index-based agricultural microinsurance

The Inclusive Innovation Business Model series showcases the innovative and inclusive solutions that social enterprises have developed to tackle tough development challenges, particularly in service delivery to the poor. Each business model is based on the experiences of several social enterprises from across the globe that have developed similar approaches and strategies to delivery services to the poor or to improve their livelihoods.

The inclusive innovation business model series has been published on the World Bank Group's Innovation Policy Platform.

Index-based Agricultural Microinsurance

Linking agricultural insurance to an index rather than to actual incurred losses is more cost-effective and, if communicated effectively, can foster trust between insurers and the insured.

Mobile banking can make agricultural insurance more affordable and simultaneously increase its availability and quick payouts.

This type of insurance allows farmers to invest more confidently and manage losses better, which helps smallholders to improve their productivity and grow their business.

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