Index Insurance for Risk Transfer - Mozambique, Maputo

Lead PI: Dr. Daniel Osgood

Unit Affiliation: International Research Institute for Climate and Society (IRI)

September 2020 - June 2021
Africa ; Mozambique
Project Type: Research

DESCRIPTION: IRI will develop indexes for 3 districts in Mozambique, including refinement of indexes for exiting locations and some expansion areas within these districts. An index will be designed, drawing from information collected from the field, and in consultation with local stakeholders and insurers. It will use all the climate data available in the region, as the basis for selecting the triggers and exits in the contract design for the locations in Mozambique. Taking lessons learned from the 2019/20 agricultural season dry run, IRI will continue to develop and improve indices that have already been created during the dry run from the recommendations provided to the prototype index. For the 2020/21 season, IRI will provide several options for the indexes including:
• Indexes designed at pixel level
• Explore Indexes at zonal level that would have to be defined
• A smoothed Index that will address window timing issues.

The final decision on which indexes to choose from will be taken by WFP and insurance partners.

IRI will provide an end of season assessment report at the end of the agricultural season. The IRI will use different satellite data sources (such as RFE like CHIRPS or TAMSAT, soil moisture, EVI & NDVI) to make comparisons and monitor the season. All available rain gauge data will be analyzed and compared. In addition, expert reports will be reviewed and presented as part of the end of season assessment. The field assessment, that will be conducted by local stakeholders, will be an important part of the end of season report. The field testimonies from farmers that will be collected by local stakeholders will be compared with the results of the index, and the various datasets. IRI will be utilizing the prototype platform of automated forms that will facilitate information capture of the participatory processes and activities conducted on the ground as part of the design process of index insurance projects.

IRI will provide two trainings to the Index Design Working Group, one introductory training to the basics of index design, and a more technically advanced and targeted training covering the index design building blocks. The training will consist focus on enhancing local stakeholders understanding of priority index insurance issues and sharing information through participatory processes to build robust index insurance solutions that are informed, understood and demanded by end-users. The IRI will also provide perspective on how to move towards the next steps of project development and application. knowledge and research outputs from leveraged resources and projects will be applied to inform project implementation.