The main objective is to assess how agricultural insurance (index and traditional) could incentivize the adoption of climate smart technologies by farmers, particularly smallholder farmers. FCI intends to use the findings from this work to assist in the development of agricultural insurance programs that would promote, rather than discourage, the adoption of climate smart technologies. The major steps of the project are as follows:
- Desktop review of the literature of the interactions between agricultural insurance and adoption of climate smart technologies
- Choice and analysis of several (3-5) case studies to show how this interaction worked in practical terms.
- Investigate the enabling environment and role of the government to promote agricultural insurance and at the same time encourage the adoption of climate smart technologies (that reduce the exposure of agriculture to climate risks)
- Lessons learnt from the case studies, highlighting both operational issues and the role of an enabling environment and role of government, to leverage agricultural insurance as an incentive for adopting climate smart technologies.