Index Insurance for Risk Transfer - Senegal

DESCRIPTION: For the 2020 season, IRI will develop indexes for all of the existing locations in Senegal. An index will be designed, with the same parameters than the ones used in 2019. A technical note along with data will be provided. IRI provide support to provide clarifications that may arise from insurance companies and local partners.
For the 2021 season, IRI will follow its co-development approach to design the indexes. This will involve mapping the index potential which includes climate analysis using various data sources. IRI, with the index design team, will perform a climate analysis to confirm the feasibility of index design as soon as the expansion areas are identified. IRI will also closely work with the design team to collect site specific information, including crowdsourced data and reference data from various secondary sources. Through iterative analysis, IRI will work with local partners to select the appropriate satellite dataset, as the basis for selecting the triggers and exits in the contract design. Before finalizing the indexes, IRI will provide a technical note to introduce the initial index along with an interactive tool. The design team will be able to change the key parameters and evaluate the performance of the index using a validation methodology that is based on analysis of hits and misses (binary matching). Similar approach will be followed to develop and improve indices for the existing locations.
For the 2021 season, IRI will working with the design team will test several approaches and provide options including, a zonal approach, an overlap of windows approach, include sowing failure cover of 30% of sum insured for Kolda and include cover for dry dekads in Kolda. Based on analysis and feedback from the design team and local partners, IRI will recommend the best index that will provide the appropriate coverage for the farmers. IRI will also provide dry and extra dry options for all clusters. The final decision on which indexes to commercialize will be taken by local partners and WFP.