ACToday is a Columbia World Project that aims to combat hunger by increasing climate knowledge in six countries that are particularly dependent on agriculture and vulnerable to the effects of climate variability and change: Bangladesh, Colombia, Ethiopia, Guatemala, Senegal and Vietnam.
ACToday’s work with country partners to develop sophisticated forecasting systems and new climate services tailored for agriculture has enabled the World Bank and World Food Programme to significantly scale their provision of affordable index insurance to more than a million farmers in multiple countries.
Index insurance is an innovative, affordable type of insurance based on an index of weather, such as rainfall measured by satellites or by a local weather station. If the amount of rainfall during critical stages of a crop’s growth cycle doesn’t reach a pre-specified threshold, farmers who purchased the insurance automatically get compensated without having to file any claims. This innovation has significantly lowered the transaction costs and risks for insurance companies, enabling them to keep premiums low and enabling millions of farmers access to coverage previously unavailable to them.During times of drought, insurance helps farmers and their families keep food on the table. In non-drought years, insurance coverage helps farmers feel safe to take out loans to buy fertilizer and other inputs that can significantly increase their yields and income.