Adams Chavula

Agriculture Meteorologist

Malawi Meteorological Services

PO Box 1808

BLANTYRE MALAWIEmailadamschavulametmalawicom

The role of Malawi Meteorological Service in Crop Weather Insurance

Expert Meeting on Requirements of the Catastrophe Insurance and Weather Risk Management Markets for National

Meteorological and Hydrological Services5-7 December 2007 WMO Headquarters Geneva Switzerland

PRESENTATION OUTLINE

Background Information about MalawiThe Malawi Meteorological ServiceOpportunities and ChallengesMalawi Crop Insurance Pilot ProjectLessons LearnedWay Forward

April 19 20232

Background Information about Malawi

85 of the people in Malawi live in rural areas most of whom depend on agriculture for a living

The majority of farmers are smallholders cultivating areas of 1 ha or less

Over 90 of crop production is rain-fed taking place during a single rainy season lasting from November to April

Rainfall during this period tends to be highly erratic Drought is a recurrent problem often causing

widespread crop failure The main food crop is maize while tobacco and

groundnut are the two principal cash crops April 19 20233

The Malawi Met Service

To provide reliable responsive and high quality weather and climate services to meet national regional and international obligations through timely dissemination of accurate and up to date data and information for socio-economic development

Motto Be wise be weather-wise

April 19 20234

MISSION STATEMENT

The Malawi Met Service

April 19 20235

bullHas 23 full weather stations including Tembwe and Balaka AWSbullSupported by over 700 rainfall and subsidiary stations operated by various organizations including MoAFSbullHowever there is still need to upgrade and expand to all districtsbullData collection thru phones email radios teleprintersbullDissemination thru Newspapers Radio TV Website email Fax phone personal contact meetings

The Malawi Met Service

Got involved in the crop weather insurance pilot project two years ago

as a provider of weather and climate data that is an input into the crop weather insurance index

The crop weather insurance pilot project is a practical example of the use of weather information to benefit the rural poor and

is a step in realizing the Millennium Goals April 19 20236

Opportunities and Challenges

Enormous volumes of weather and climate data exist in Malawi

Data collection started many years ago Rainfall records date back to 1891 for some stations Data of other parameters such as temperature

humidity and wind cover more than 50 years This data is of excellent quality satisfying a key

prerequisite for risk transfer This is useful data but it can be even more useful if data can be transformed into applicable derivatives

April 19 20237

Opportunities and Challenges

Traditional insurance products are largely underdeveloped

ndash Crop Insurance can be very expensive to administer

ndashIndividual Crop yields and field inspections needed

ndash Small size of the farms Malawi Meteorological Service has an

operational national maize production forecasting model which can be adapted for reinsurance

April 19 20238

April 19 20239

Outputs from Malawi Meteorological Officersquos national maize production forecasting model

Difference

2005 indexAverage

Opportunities and Challenges

Bad newsndash Thin network of operational weather stationsndash Lack of weather data in Crop growing areas

Good newsndash With data availability investment in infrastructure

can compliment the key requirements to operate a macro Insurance project

ndash A simple automated station with satellite communication capabilities is worth $12000)

April 19 202310

What is weather insurance

Financial protection based on the performance of a specified index in relation to a specified trigger

Offers protection against uncertain costs or revenues that result from volume volatilityndash Farmers are compensated against

unfavorable weather fluctuations that impact physical volumes produced

April 19 202311

Malawi Crop Weather Insurance Pilot Project

Weather based index insurance - recognised as one of the methodologies that can be used sustain livelihoods and reduce poverty as part of the MDGs

Malawi is one of the countries piloting the methodology

Due to high levels of poverty the farmers were not credit worth and hence they could not access loans to purchase inputs

The insurance helps farmers obtain financing necessary to obtain certified seeds which produce increased yields and revenues as well as greater resistance to disease

April 19 202312

PILOT DETAILS

Farmers1048713 NASFAM smallholder farmers organized in clubsTypically 10-20 members with joint liability for loan repayment1048713 Received Groundnut and Maize seed1048713 Live within 20 km of a Class A Weather Station Five stations in central Malawi are used for the pilot

Chitedze Kamuzu International Airport Kasungu Tembwe Nkhotakota

April 19 202313

Other stakeholders

InsurersInsurance Association of Malawi

FinanciersOpportunity International Bank of Malawi Malawi Rural Finance Corporation

Seed providerNASFAM from supplier Seed Co

Supplier of Climate and Weather data Malawi Meteorological Services

Project manager and technical advisor Commodity Risk Management Group of the World Bank

April 19 202314

Product packaging

Index linked loans Insurance covers cost of production as financed by a

Opportunity International Bank of Malawi (OIBM) or MRFC

OIBM and MRFC pay premiums and recover them through interest rate

In case of drought payment made to financial institution ndashfarmer relieved of the burden and is able to borrow for

the next season

April 19 202315

EXAMPLE LILONGWE CONTRACT MAIZE

Deficit Rainfall (mm)

Payou

t ($

)

PHASE 1Sowing amp Establishment

PHASE 3Yield Formation to Harvest

Deficit Rainfall (mm)

Payou

t ($

)

Deficit Rainfall (mm)

Payou

t ($

)

Cropping Calendar Sowing Window ampDynamic Start Date

PHASE 2Growth amp Flowering

Final Insurance Payout = min (Max Payout Phase 1 + 2 + 3 Payouts)

Phase 1 50 daysTrigger Level 40mmPayout per mm 580 MKWmmMaximum Payout 5800 MKW

Phase 2 30 daysTrigger Level 130mmPayout per mm 58 MKWmmMaximum Payout 5800 MKW

Phase 3 40 daysTrigger Level 25mmPayout per mm 1160 MKWmmMaximum Payout 5800 MKW

10th November ndash 10 January25 mm in 10 days

Lesson Learned Weather Insurance

Need to devote significant time and resources for proper communication and explanation with farmers insurance is new to most Malawians

Need greater ownership amongst participating organizations not over reliance on World Bank champion

Need for Malawi Met Service to understudy CRMGIRI in contract design activities

No major drought so full impact of weather insurance not been tested

20 km radius is too wide the areas were not homogeneous enough there is need to review this

19 April 202317

Lesson Learned Weather Insurance

Importance of collaborative efforts between producers and users

weather insurance for farmers in developing countries is feasible

Sustainability and scalability will not be achieved unless product development is owned locally and data limitations can be overcome

Successful weather risk markets can be created byndash Vigorous product delivery channels to farmers

linkages to finance or supply chainndash Local ownership through capacity building and

technology transfer19 April 202318

WAY FORWARD

Need for reliable verifiable and accessible

meteorological data Upgrade primary weather stations to fully automated

GSM-enabled stations ndash Chileka KIA Tembwe and Balaka already

automated Invest in automatic rain gauges with GSM

communication technology Set-up communications Hub in Blantyre to ensure

real-time reporting to GTS and transaction to stakeholders 19 April 202319

WAY FORWARD

In conclusion there is need for Governments to put in place appropriate policies and allocate sufficient resources (financial and human) for meteorological services to carry out their mandate effectively

19 April 202320

Thank you

for your attention

19 April 202321

PRESENTATION OUTLINE

Background Information about MalawiThe Malawi Meteorological ServiceOpportunities and ChallengesMalawi Crop Insurance Pilot ProjectLessons LearnedWay Forward

April 19 20232

Background Information about Malawi

85 of the people in Malawi live in rural areas most of whom depend on agriculture for a living

The majority of farmers are smallholders cultivating areas of 1 ha or less

Over 90 of crop production is rain-fed taking place during a single rainy season lasting from November to April

Rainfall during this period tends to be highly erratic Drought is a recurrent problem often causing

widespread crop failure The main food crop is maize while tobacco and

groundnut are the two principal cash crops April 19 20233

The Malawi Met Service

To provide reliable responsive and high quality weather and climate services to meet national regional and international obligations through timely dissemination of accurate and up to date data and information for socio-economic development

Motto Be wise be weather-wise

April 19 20234

MISSION STATEMENT

The Malawi Met Service

April 19 20235

bullHas 23 full weather stations including Tembwe and Balaka AWSbullSupported by over 700 rainfall and subsidiary stations operated by various organizations including MoAFSbullHowever there is still need to upgrade and expand to all districtsbullData collection thru phones email radios teleprintersbullDissemination thru Newspapers Radio TV Website email Fax phone personal contact meetings

The Malawi Met Service

Got involved in the crop weather insurance pilot project two years ago

as a provider of weather and climate data that is an input into the crop weather insurance index

The crop weather insurance pilot project is a practical example of the use of weather information to benefit the rural poor and

is a step in realizing the Millennium Goals April 19 20236

Opportunities and Challenges

Enormous volumes of weather and climate data exist in Malawi

Data collection started many years ago Rainfall records date back to 1891 for some stations Data of other parameters such as temperature

humidity and wind cover more than 50 years This data is of excellent quality satisfying a key

prerequisite for risk transfer This is useful data but it can be even more useful if data can be transformed into applicable derivatives

April 19 20237

Opportunities and Challenges

Traditional insurance products are largely underdeveloped

ndash Crop Insurance can be very expensive to administer

ndashIndividual Crop yields and field inspections needed

ndash Small size of the farms Malawi Meteorological Service has an

operational national maize production forecasting model which can be adapted for reinsurance

April 19 20238

April 19 20239

Outputs from Malawi Meteorological Officersquos national maize production forecasting model

Difference

2005 indexAverage

Opportunities and Challenges

Bad newsndash Thin network of operational weather stationsndash Lack of weather data in Crop growing areas

Good newsndash With data availability investment in infrastructure

can compliment the key requirements to operate a macro Insurance project

ndash A simple automated station with satellite communication capabilities is worth $12000)

April 19 202310

What is weather insurance

Financial protection based on the performance of a specified index in relation to a specified trigger

Offers protection against uncertain costs or revenues that result from volume volatilityndash Farmers are compensated against

unfavorable weather fluctuations that impact physical volumes produced

April 19 202311

Malawi Crop Weather Insurance Pilot Project

Weather based index insurance - recognised as one of the methodologies that can be used sustain livelihoods and reduce poverty as part of the MDGs

Malawi is one of the countries piloting the methodology

Due to high levels of poverty the farmers were not credit worth and hence they could not access loans to purchase inputs

The insurance helps farmers obtain financing necessary to obtain certified seeds which produce increased yields and revenues as well as greater resistance to disease

April 19 202312

PILOT DETAILS

Farmers1048713 NASFAM smallholder farmers organized in clubsTypically 10-20 members with joint liability for loan repayment1048713 Received Groundnut and Maize seed1048713 Live within 20 km of a Class A Weather Station Five stations in central Malawi are used for the pilot

Chitedze Kamuzu International Airport Kasungu Tembwe Nkhotakota

April 19 202313

Other stakeholders

InsurersInsurance Association of Malawi

FinanciersOpportunity International Bank of Malawi Malawi Rural Finance Corporation

Seed providerNASFAM from supplier Seed Co

Supplier of Climate and Weather data Malawi Meteorological Services

Project manager and technical advisor Commodity Risk Management Group of the World Bank

April 19 202314

Product packaging

Index linked loans Insurance covers cost of production as financed by a

Opportunity International Bank of Malawi (OIBM) or MRFC

OIBM and MRFC pay premiums and recover them through interest rate

In case of drought payment made to financial institution ndashfarmer relieved of the burden and is able to borrow for

the next season

April 19 202315

EXAMPLE LILONGWE CONTRACT MAIZE

Deficit Rainfall (mm)

Payou

t ($

)

PHASE 1Sowing amp Establishment

PHASE 3Yield Formation to Harvest

Deficit Rainfall (mm)

Payou

t ($

)

Deficit Rainfall (mm)

Payou

t ($

)

Cropping Calendar Sowing Window ampDynamic Start Date

PHASE 2Growth amp Flowering

Final Insurance Payout = min (Max Payout Phase 1 + 2 + 3 Payouts)

Phase 1 50 daysTrigger Level 40mmPayout per mm 580 MKWmmMaximum Payout 5800 MKW

Phase 2 30 daysTrigger Level 130mmPayout per mm 58 MKWmmMaximum Payout 5800 MKW

Phase 3 40 daysTrigger Level 25mmPayout per mm 1160 MKWmmMaximum Payout 5800 MKW

10th November ndash 10 January25 mm in 10 days

Lesson Learned Weather Insurance

Need to devote significant time and resources for proper communication and explanation with farmers insurance is new to most Malawians

Need greater ownership amongst participating organizations not over reliance on World Bank champion

Need for Malawi Met Service to understudy CRMGIRI in contract design activities

No major drought so full impact of weather insurance not been tested

20 km radius is too wide the areas were not homogeneous enough there is need to review this

19 April 202317

Lesson Learned Weather Insurance

Importance of collaborative efforts between producers and users

weather insurance for farmers in developing countries is feasible

Sustainability and scalability will not be achieved unless product development is owned locally and data limitations can be overcome

Successful weather risk markets can be created byndash Vigorous product delivery channels to farmers

linkages to finance or supply chainndash Local ownership through capacity building and

technology transfer19 April 202318

WAY FORWARD

Need for reliable verifiable and accessible

meteorological data Upgrade primary weather stations to fully automated

GSM-enabled stations ndash Chileka KIA Tembwe and Balaka already

automated Invest in automatic rain gauges with GSM

communication technology Set-up communications Hub in Blantyre to ensure

real-time reporting to GTS and transaction to stakeholders 19 April 202319

WAY FORWARD

In conclusion there is need for Governments to put in place appropriate policies and allocate sufficient resources (financial and human) for meteorological services to carry out their mandate effectively

19 April 202320

Thank you

for your attention

19 April 202321

Background Information about Malawi

85 of the people in Malawi live in rural areas most of whom depend on agriculture for a living

The majority of farmers are smallholders cultivating areas of 1 ha or less

Over 90 of crop production is rain-fed taking place during a single rainy season lasting from November to April

Rainfall during this period tends to be highly erratic Drought is a recurrent problem often causing

widespread crop failure The main food crop is maize while tobacco and

groundnut are the two principal cash crops April 19 20233

The Malawi Met Service

To provide reliable responsive and high quality weather and climate services to meet national regional and international obligations through timely dissemination of accurate and up to date data and information for socio-economic development

Motto Be wise be weather-wise

April 19 20234

MISSION STATEMENT

The Malawi Met Service

April 19 20235

bullHas 23 full weather stations including Tembwe and Balaka AWSbullSupported by over 700 rainfall and subsidiary stations operated by various organizations including MoAFSbullHowever there is still need to upgrade and expand to all districtsbullData collection thru phones email radios teleprintersbullDissemination thru Newspapers Radio TV Website email Fax phone personal contact meetings

The Malawi Met Service

Got involved in the crop weather insurance pilot project two years ago

as a provider of weather and climate data that is an input into the crop weather insurance index

The crop weather insurance pilot project is a practical example of the use of weather information to benefit the rural poor and

is a step in realizing the Millennium Goals April 19 20236

Opportunities and Challenges

Enormous volumes of weather and climate data exist in Malawi

Data collection started many years ago Rainfall records date back to 1891 for some stations Data of other parameters such as temperature

humidity and wind cover more than 50 years This data is of excellent quality satisfying a key

prerequisite for risk transfer This is useful data but it can be even more useful if data can be transformed into applicable derivatives

April 19 20237

Opportunities and Challenges

Traditional insurance products are largely underdeveloped

ndash Crop Insurance can be very expensive to administer

ndashIndividual Crop yields and field inspections needed

ndash Small size of the farms Malawi Meteorological Service has an

operational national maize production forecasting model which can be adapted for reinsurance

April 19 20238

April 19 20239

Outputs from Malawi Meteorological Officersquos national maize production forecasting model

Difference

2005 indexAverage

Opportunities and Challenges

Bad newsndash Thin network of operational weather stationsndash Lack of weather data in Crop growing areas

Good newsndash With data availability investment in infrastructure

can compliment the key requirements to operate a macro Insurance project

ndash A simple automated station with satellite communication capabilities is worth $12000)

April 19 202310

What is weather insurance

Financial protection based on the performance of a specified index in relation to a specified trigger

Offers protection against uncertain costs or revenues that result from volume volatilityndash Farmers are compensated against

unfavorable weather fluctuations that impact physical volumes produced

April 19 202311

Malawi Crop Weather Insurance Pilot Project

Weather based index insurance - recognised as one of the methodologies that can be used sustain livelihoods and reduce poverty as part of the MDGs

Malawi is one of the countries piloting the methodology

Due to high levels of poverty the farmers were not credit worth and hence they could not access loans to purchase inputs

The insurance helps farmers obtain financing necessary to obtain certified seeds which produce increased yields and revenues as well as greater resistance to disease

April 19 202312

PILOT DETAILS

Farmers1048713 NASFAM smallholder farmers organized in clubsTypically 10-20 members with joint liability for loan repayment1048713 Received Groundnut and Maize seed1048713 Live within 20 km of a Class A Weather Station Five stations in central Malawi are used for the pilot

Chitedze Kamuzu International Airport Kasungu Tembwe Nkhotakota

April 19 202313

Other stakeholders

InsurersInsurance Association of Malawi

FinanciersOpportunity International Bank of Malawi Malawi Rural Finance Corporation

Seed providerNASFAM from supplier Seed Co

Supplier of Climate and Weather data Malawi Meteorological Services

Project manager and technical advisor Commodity Risk Management Group of the World Bank

April 19 202314

Product packaging

Index linked loans Insurance covers cost of production as financed by a

Opportunity International Bank of Malawi (OIBM) or MRFC

OIBM and MRFC pay premiums and recover them through interest rate

In case of drought payment made to financial institution ndashfarmer relieved of the burden and is able to borrow for

the next season

April 19 202315

EXAMPLE LILONGWE CONTRACT MAIZE

Deficit Rainfall (mm)

Payou

t ($

)

PHASE 1Sowing amp Establishment

PHASE 3Yield Formation to Harvest

Deficit Rainfall (mm)

Payou

t ($

)

Deficit Rainfall (mm)

Payou

t ($

)

Cropping Calendar Sowing Window ampDynamic Start Date

PHASE 2Growth amp Flowering

Final Insurance Payout = min (Max Payout Phase 1 + 2 + 3 Payouts)

Phase 1 50 daysTrigger Level 40mmPayout per mm 580 MKWmmMaximum Payout 5800 MKW

Phase 2 30 daysTrigger Level 130mmPayout per mm 58 MKWmmMaximum Payout 5800 MKW

Phase 3 40 daysTrigger Level 25mmPayout per mm 1160 MKWmmMaximum Payout 5800 MKW

10th November ndash 10 January25 mm in 10 days

Lesson Learned Weather Insurance

Need to devote significant time and resources for proper communication and explanation with farmers insurance is new to most Malawians

Need greater ownership amongst participating organizations not over reliance on World Bank champion

Need for Malawi Met Service to understudy CRMGIRI in contract design activities

No major drought so full impact of weather insurance not been tested

20 km radius is too wide the areas were not homogeneous enough there is need to review this

19 April 202317

Lesson Learned Weather Insurance

Importance of collaborative efforts between producers and users

weather insurance for farmers in developing countries is feasible

Sustainability and scalability will not be achieved unless product development is owned locally and data limitations can be overcome

Successful weather risk markets can be created byndash Vigorous product delivery channels to farmers

linkages to finance or supply chainndash Local ownership through capacity building and

technology transfer19 April 202318

WAY FORWARD

Need for reliable verifiable and accessible

meteorological data Upgrade primary weather stations to fully automated

GSM-enabled stations ndash Chileka KIA Tembwe and Balaka already

automated Invest in automatic rain gauges with GSM

communication technology Set-up communications Hub in Blantyre to ensure

real-time reporting to GTS and transaction to stakeholders 19 April 202319

WAY FORWARD

In conclusion there is need for Governments to put in place appropriate policies and allocate sufficient resources (financial and human) for meteorological services to carry out their mandate effectively

19 April 202320

Thank you

for your attention

19 April 202321

The Malawi Met Service

To provide reliable responsive and high quality weather and climate services to meet national regional and international obligations through timely dissemination of accurate and up to date data and information for socio-economic development

Motto Be wise be weather-wise

April 19 20234

MISSION STATEMENT

The Malawi Met Service

April 19 20235

bullHas 23 full weather stations including Tembwe and Balaka AWSbullSupported by over 700 rainfall and subsidiary stations operated by various organizations including MoAFSbullHowever there is still need to upgrade and expand to all districtsbullData collection thru phones email radios teleprintersbullDissemination thru Newspapers Radio TV Website email Fax phone personal contact meetings

The Malawi Met Service

Got involved in the crop weather insurance pilot project two years ago

as a provider of weather and climate data that is an input into the crop weather insurance index

The crop weather insurance pilot project is a practical example of the use of weather information to benefit the rural poor and

is a step in realizing the Millennium Goals April 19 20236

Opportunities and Challenges

Enormous volumes of weather and climate data exist in Malawi

Data collection started many years ago Rainfall records date back to 1891 for some stations Data of other parameters such as temperature

humidity and wind cover more than 50 years This data is of excellent quality satisfying a key

prerequisite for risk transfer This is useful data but it can be even more useful if data can be transformed into applicable derivatives

April 19 20237

Opportunities and Challenges

Traditional insurance products are largely underdeveloped

ndash Crop Insurance can be very expensive to administer

ndashIndividual Crop yields and field inspections needed

ndash Small size of the farms Malawi Meteorological Service has an

operational national maize production forecasting model which can be adapted for reinsurance

April 19 20238

April 19 20239

Outputs from Malawi Meteorological Officersquos national maize production forecasting model

Difference

2005 indexAverage

Opportunities and Challenges

Bad newsndash Thin network of operational weather stationsndash Lack of weather data in Crop growing areas

Good newsndash With data availability investment in infrastructure

can compliment the key requirements to operate a macro Insurance project

ndash A simple automated station with satellite communication capabilities is worth $12000)

April 19 202310

What is weather insurance

Financial protection based on the performance of a specified index in relation to a specified trigger

Offers protection against uncertain costs or revenues that result from volume volatilityndash Farmers are compensated against

unfavorable weather fluctuations that impact physical volumes produced

April 19 202311

Malawi Crop Weather Insurance Pilot Project

Weather based index insurance - recognised as one of the methodologies that can be used sustain livelihoods and reduce poverty as part of the MDGs

Malawi is one of the countries piloting the methodology

Due to high levels of poverty the farmers were not credit worth and hence they could not access loans to purchase inputs

The insurance helps farmers obtain financing necessary to obtain certified seeds which produce increased yields and revenues as well as greater resistance to disease

April 19 202312

PILOT DETAILS

Farmers1048713 NASFAM smallholder farmers organized in clubsTypically 10-20 members with joint liability for loan repayment1048713 Received Groundnut and Maize seed1048713 Live within 20 km of a Class A Weather Station Five stations in central Malawi are used for the pilot

Chitedze Kamuzu International Airport Kasungu Tembwe Nkhotakota

April 19 202313

Other stakeholders

InsurersInsurance Association of Malawi

FinanciersOpportunity International Bank of Malawi Malawi Rural Finance Corporation

Seed providerNASFAM from supplier Seed Co

Supplier of Climate and Weather data Malawi Meteorological Services

Project manager and technical advisor Commodity Risk Management Group of the World Bank

April 19 202314

Product packaging

Index linked loans Insurance covers cost of production as financed by a

Opportunity International Bank of Malawi (OIBM) or MRFC

OIBM and MRFC pay premiums and recover them through interest rate

In case of drought payment made to financial institution ndashfarmer relieved of the burden and is able to borrow for

the next season

April 19 202315

EXAMPLE LILONGWE CONTRACT MAIZE

Deficit Rainfall (mm)

Payou

t ($

)

PHASE 1Sowing amp Establishment

PHASE 3Yield Formation to Harvest

Deficit Rainfall (mm)

Payou

t ($

)

Deficit Rainfall (mm)

Payou

t ($

)

Cropping Calendar Sowing Window ampDynamic Start Date

PHASE 2Growth amp Flowering

Final Insurance Payout = min (Max Payout Phase 1 + 2 + 3 Payouts)

Phase 1 50 daysTrigger Level 40mmPayout per mm 580 MKWmmMaximum Payout 5800 MKW

Phase 2 30 daysTrigger Level 130mmPayout per mm 58 MKWmmMaximum Payout 5800 MKW

Phase 3 40 daysTrigger Level 25mmPayout per mm 1160 MKWmmMaximum Payout 5800 MKW

10th November ndash 10 January25 mm in 10 days

Lesson Learned Weather Insurance

Need to devote significant time and resources for proper communication and explanation with farmers insurance is new to most Malawians

Need greater ownership amongst participating organizations not over reliance on World Bank champion

Need for Malawi Met Service to understudy CRMGIRI in contract design activities

No major drought so full impact of weather insurance not been tested

20 km radius is too wide the areas were not homogeneous enough there is need to review this

19 April 202317

Lesson Learned Weather Insurance

Importance of collaborative efforts between producers and users

weather insurance for farmers in developing countries is feasible

Sustainability and scalability will not be achieved unless product development is owned locally and data limitations can be overcome

Successful weather risk markets can be created byndash Vigorous product delivery channels to farmers

linkages to finance or supply chainndash Local ownership through capacity building and

technology transfer19 April 202318

WAY FORWARD

Need for reliable verifiable and accessible

meteorological data Upgrade primary weather stations to fully automated

GSM-enabled stations ndash Chileka KIA Tembwe and Balaka already

automated Invest in automatic rain gauges with GSM

communication technology Set-up communications Hub in Blantyre to ensure

real-time reporting to GTS and transaction to stakeholders 19 April 202319

WAY FORWARD

In conclusion there is need for Governments to put in place appropriate policies and allocate sufficient resources (financial and human) for meteorological services to carry out their mandate effectively

19 April 202320

Thank you

for your attention

19 April 202321

The Malawi Met Service

April 19 20235

bullHas 23 full weather stations including Tembwe and Balaka AWSbullSupported by over 700 rainfall and subsidiary stations operated by various organizations including MoAFSbullHowever there is still need to upgrade and expand to all districtsbullData collection thru phones email radios teleprintersbullDissemination thru Newspapers Radio TV Website email Fax phone personal contact meetings

The Malawi Met Service

Got involved in the crop weather insurance pilot project two years ago

as a provider of weather and climate data that is an input into the crop weather insurance index

The crop weather insurance pilot project is a practical example of the use of weather information to benefit the rural poor and

is a step in realizing the Millennium Goals April 19 20236

Opportunities and Challenges

Enormous volumes of weather and climate data exist in Malawi

Data collection started many years ago Rainfall records date back to 1891 for some stations Data of other parameters such as temperature

humidity and wind cover more than 50 years This data is of excellent quality satisfying a key

prerequisite for risk transfer This is useful data but it can be even more useful if data can be transformed into applicable derivatives

April 19 20237

Opportunities and Challenges

Traditional insurance products are largely underdeveloped

ndash Crop Insurance can be very expensive to administer

ndashIndividual Crop yields and field inspections needed

ndash Small size of the farms Malawi Meteorological Service has an

operational national maize production forecasting model which can be adapted for reinsurance

April 19 20238

April 19 20239

Outputs from Malawi Meteorological Officersquos national maize production forecasting model

Difference

2005 indexAverage

Opportunities and Challenges

Bad newsndash Thin network of operational weather stationsndash Lack of weather data in Crop growing areas

Good newsndash With data availability investment in infrastructure

can compliment the key requirements to operate a macro Insurance project

ndash A simple automated station with satellite communication capabilities is worth $12000)

April 19 202310

What is weather insurance

Financial protection based on the performance of a specified index in relation to a specified trigger

Offers protection against uncertain costs or revenues that result from volume volatilityndash Farmers are compensated against

unfavorable weather fluctuations that impact physical volumes produced

April 19 202311

Malawi Crop Weather Insurance Pilot Project

Weather based index insurance - recognised as one of the methodologies that can be used sustain livelihoods and reduce poverty as part of the MDGs

Malawi is one of the countries piloting the methodology

Due to high levels of poverty the farmers were not credit worth and hence they could not access loans to purchase inputs

The insurance helps farmers obtain financing necessary to obtain certified seeds which produce increased yields and revenues as well as greater resistance to disease

April 19 202312

PILOT DETAILS

Farmers1048713 NASFAM smallholder farmers organized in clubsTypically 10-20 members with joint liability for loan repayment1048713 Received Groundnut and Maize seed1048713 Live within 20 km of a Class A Weather Station Five stations in central Malawi are used for the pilot

Chitedze Kamuzu International Airport Kasungu Tembwe Nkhotakota

April 19 202313

Other stakeholders

InsurersInsurance Association of Malawi

FinanciersOpportunity International Bank of Malawi Malawi Rural Finance Corporation

Seed providerNASFAM from supplier Seed Co

Supplier of Climate and Weather data Malawi Meteorological Services

Project manager and technical advisor Commodity Risk Management Group of the World Bank

April 19 202314

Product packaging

Index linked loans Insurance covers cost of production as financed by a

Opportunity International Bank of Malawi (OIBM) or MRFC

OIBM and MRFC pay premiums and recover them through interest rate

In case of drought payment made to financial institution ndashfarmer relieved of the burden and is able to borrow for

the next season

April 19 202315

EXAMPLE LILONGWE CONTRACT MAIZE

Deficit Rainfall (mm)

Payou

t ($

)

PHASE 1Sowing amp Establishment

PHASE 3Yield Formation to Harvest

Deficit Rainfall (mm)

Payou

t ($

)

Deficit Rainfall (mm)

Payou

t ($

)

Cropping Calendar Sowing Window ampDynamic Start Date

PHASE 2Growth amp Flowering

Final Insurance Payout = min (Max Payout Phase 1 + 2 + 3 Payouts)

Phase 1 50 daysTrigger Level 40mmPayout per mm 580 MKWmmMaximum Payout 5800 MKW

Phase 2 30 daysTrigger Level 130mmPayout per mm 58 MKWmmMaximum Payout 5800 MKW

Phase 3 40 daysTrigger Level 25mmPayout per mm 1160 MKWmmMaximum Payout 5800 MKW

10th November ndash 10 January25 mm in 10 days

Lesson Learned Weather Insurance

Need to devote significant time and resources for proper communication and explanation with farmers insurance is new to most Malawians

Need greater ownership amongst participating organizations not over reliance on World Bank champion

Need for Malawi Met Service to understudy CRMGIRI in contract design activities

No major drought so full impact of weather insurance not been tested

20 km radius is too wide the areas were not homogeneous enough there is need to review this

19 April 202317

Lesson Learned Weather Insurance

Importance of collaborative efforts between producers and users

weather insurance for farmers in developing countries is feasible

Sustainability and scalability will not be achieved unless product development is owned locally and data limitations can be overcome

Successful weather risk markets can be created byndash Vigorous product delivery channels to farmers

linkages to finance or supply chainndash Local ownership through capacity building and

technology transfer19 April 202318

WAY FORWARD

Need for reliable verifiable and accessible

meteorological data Upgrade primary weather stations to fully automated

GSM-enabled stations ndash Chileka KIA Tembwe and Balaka already

automated Invest in automatic rain gauges with GSM

communication technology Set-up communications Hub in Blantyre to ensure

real-time reporting to GTS and transaction to stakeholders 19 April 202319

WAY FORWARD

In conclusion there is need for Governments to put in place appropriate policies and allocate sufficient resources (financial and human) for meteorological services to carry out their mandate effectively

19 April 202320

Thank you

for your attention

19 April 202321

The Malawi Met Service

Got involved in the crop weather insurance pilot project two years ago

as a provider of weather and climate data that is an input into the crop weather insurance index

The crop weather insurance pilot project is a practical example of the use of weather information to benefit the rural poor and

is a step in realizing the Millennium Goals April 19 20236

Opportunities and Challenges

Enormous volumes of weather and climate data exist in Malawi

Data collection started many years ago Rainfall records date back to 1891 for some stations Data of other parameters such as temperature

humidity and wind cover more than 50 years This data is of excellent quality satisfying a key

prerequisite for risk transfer This is useful data but it can be even more useful if data can be transformed into applicable derivatives

April 19 20237

Opportunities and Challenges

Traditional insurance products are largely underdeveloped

ndash Crop Insurance can be very expensive to administer

ndashIndividual Crop yields and field inspections needed

ndash Small size of the farms Malawi Meteorological Service has an

operational national maize production forecasting model which can be adapted for reinsurance

April 19 20238

April 19 20239

Outputs from Malawi Meteorological Officersquos national maize production forecasting model

Difference

2005 indexAverage

Opportunities and Challenges

Bad newsndash Thin network of operational weather stationsndash Lack of weather data in Crop growing areas

Good newsndash With data availability investment in infrastructure

can compliment the key requirements to operate a macro Insurance project

ndash A simple automated station with satellite communication capabilities is worth $12000)

April 19 202310

What is weather insurance

Financial protection based on the performance of a specified index in relation to a specified trigger

Offers protection against uncertain costs or revenues that result from volume volatilityndash Farmers are compensated against

unfavorable weather fluctuations that impact physical volumes produced

April 19 202311

Malawi Crop Weather Insurance Pilot Project

Weather based index insurance - recognised as one of the methodologies that can be used sustain livelihoods and reduce poverty as part of the MDGs

Malawi is one of the countries piloting the methodology

Due to high levels of poverty the farmers were not credit worth and hence they could not access loans to purchase inputs

The insurance helps farmers obtain financing necessary to obtain certified seeds which produce increased yields and revenues as well as greater resistance to disease

April 19 202312

PILOT DETAILS

Farmers1048713 NASFAM smallholder farmers organized in clubsTypically 10-20 members with joint liability for loan repayment1048713 Received Groundnut and Maize seed1048713 Live within 20 km of a Class A Weather Station Five stations in central Malawi are used for the pilot

Chitedze Kamuzu International Airport Kasungu Tembwe Nkhotakota

April 19 202313

Other stakeholders

InsurersInsurance Association of Malawi

FinanciersOpportunity International Bank of Malawi Malawi Rural Finance Corporation

Seed providerNASFAM from supplier Seed Co

Supplier of Climate and Weather data Malawi Meteorological Services

Project manager and technical advisor Commodity Risk Management Group of the World Bank

April 19 202314

Product packaging

Index linked loans Insurance covers cost of production as financed by a

Opportunity International Bank of Malawi (OIBM) or MRFC

OIBM and MRFC pay premiums and recover them through interest rate

In case of drought payment made to financial institution ndashfarmer relieved of the burden and is able to borrow for

the next season

April 19 202315

EXAMPLE LILONGWE CONTRACT MAIZE

Deficit Rainfall (mm)

Payou

t ($

)

PHASE 1Sowing amp Establishment

PHASE 3Yield Formation to Harvest

Deficit Rainfall (mm)

Payou

t ($

)

Deficit Rainfall (mm)

Payou

t ($

)

Cropping Calendar Sowing Window ampDynamic Start Date

PHASE 2Growth amp Flowering

Final Insurance Payout = min (Max Payout Phase 1 + 2 + 3 Payouts)

Phase 1 50 daysTrigger Level 40mmPayout per mm 580 MKWmmMaximum Payout 5800 MKW

Phase 2 30 daysTrigger Level 130mmPayout per mm 58 MKWmmMaximum Payout 5800 MKW

Phase 3 40 daysTrigger Level 25mmPayout per mm 1160 MKWmmMaximum Payout 5800 MKW

10th November ndash 10 January25 mm in 10 days

Lesson Learned Weather Insurance

Need to devote significant time and resources for proper communication and explanation with farmers insurance is new to most Malawians

Need greater ownership amongst participating organizations not over reliance on World Bank champion

Need for Malawi Met Service to understudy CRMGIRI in contract design activities

No major drought so full impact of weather insurance not been tested

20 km radius is too wide the areas were not homogeneous enough there is need to review this

19 April 202317

Lesson Learned Weather Insurance

Importance of collaborative efforts between producers and users

weather insurance for farmers in developing countries is feasible

Sustainability and scalability will not be achieved unless product development is owned locally and data limitations can be overcome

Successful weather risk markets can be created byndash Vigorous product delivery channels to farmers

linkages to finance or supply chainndash Local ownership through capacity building and

technology transfer19 April 202318

WAY FORWARD

Need for reliable verifiable and accessible

meteorological data Upgrade primary weather stations to fully automated

GSM-enabled stations ndash Chileka KIA Tembwe and Balaka already

automated Invest in automatic rain gauges with GSM

communication technology Set-up communications Hub in Blantyre to ensure

real-time reporting to GTS and transaction to stakeholders 19 April 202319

WAY FORWARD

In conclusion there is need for Governments to put in place appropriate policies and allocate sufficient resources (financial and human) for meteorological services to carry out their mandate effectively

19 April 202320

Thank you

for your attention

19 April 202321

Opportunities and Challenges

Enormous volumes of weather and climate data exist in Malawi

Data collection started many years ago Rainfall records date back to 1891 for some stations Data of other parameters such as temperature

humidity and wind cover more than 50 years This data is of excellent quality satisfying a key

prerequisite for risk transfer This is useful data but it can be even more useful if data can be transformed into applicable derivatives

April 19 20237

Opportunities and Challenges

Traditional insurance products are largely underdeveloped

ndash Crop Insurance can be very expensive to administer

ndashIndividual Crop yields and field inspections needed

ndash Small size of the farms Malawi Meteorological Service has an

operational national maize production forecasting model which can be adapted for reinsurance

April 19 20238

April 19 20239

Outputs from Malawi Meteorological Officersquos national maize production forecasting model

Difference

2005 indexAverage

Opportunities and Challenges

Bad newsndash Thin network of operational weather stationsndash Lack of weather data in Crop growing areas

Good newsndash With data availability investment in infrastructure

can compliment the key requirements to operate a macro Insurance project

ndash A simple automated station with satellite communication capabilities is worth $12000)

April 19 202310

What is weather insurance

Financial protection based on the performance of a specified index in relation to a specified trigger

Offers protection against uncertain costs or revenues that result from volume volatilityndash Farmers are compensated against

unfavorable weather fluctuations that impact physical volumes produced

April 19 202311

Malawi Crop Weather Insurance Pilot Project

Weather based index insurance - recognised as one of the methodologies that can be used sustain livelihoods and reduce poverty as part of the MDGs

Malawi is one of the countries piloting the methodology

Due to high levels of poverty the farmers were not credit worth and hence they could not access loans to purchase inputs

The insurance helps farmers obtain financing necessary to obtain certified seeds which produce increased yields and revenues as well as greater resistance to disease

April 19 202312

PILOT DETAILS

Farmers1048713 NASFAM smallholder farmers organized in clubsTypically 10-20 members with joint liability for loan repayment1048713 Received Groundnut and Maize seed1048713 Live within 20 km of a Class A Weather Station Five stations in central Malawi are used for the pilot

Chitedze Kamuzu International Airport Kasungu Tembwe Nkhotakota

April 19 202313

Other stakeholders

InsurersInsurance Association of Malawi

FinanciersOpportunity International Bank of Malawi Malawi Rural Finance Corporation

Seed providerNASFAM from supplier Seed Co

Supplier of Climate and Weather data Malawi Meteorological Services

Project manager and technical advisor Commodity Risk Management Group of the World Bank

April 19 202314

Product packaging

Index linked loans Insurance covers cost of production as financed by a

Opportunity International Bank of Malawi (OIBM) or MRFC

OIBM and MRFC pay premiums and recover them through interest rate

In case of drought payment made to financial institution ndashfarmer relieved of the burden and is able to borrow for

the next season

April 19 202315

EXAMPLE LILONGWE CONTRACT MAIZE

Deficit Rainfall (mm)

Payou

t ($

)

PHASE 1Sowing amp Establishment

PHASE 3Yield Formation to Harvest

Deficit Rainfall (mm)

Payou

t ($

)

Deficit Rainfall (mm)

Payou

t ($

)

Cropping Calendar Sowing Window ampDynamic Start Date

PHASE 2Growth amp Flowering

Final Insurance Payout = min (Max Payout Phase 1 + 2 + 3 Payouts)

Phase 1 50 daysTrigger Level 40mmPayout per mm 580 MKWmmMaximum Payout 5800 MKW

Phase 2 30 daysTrigger Level 130mmPayout per mm 58 MKWmmMaximum Payout 5800 MKW

Phase 3 40 daysTrigger Level 25mmPayout per mm 1160 MKWmmMaximum Payout 5800 MKW

10th November ndash 10 January25 mm in 10 days

Lesson Learned Weather Insurance

Need to devote significant time and resources for proper communication and explanation with farmers insurance is new to most Malawians

Need greater ownership amongst participating organizations not over reliance on World Bank champion

Need for Malawi Met Service to understudy CRMGIRI in contract design activities

No major drought so full impact of weather insurance not been tested

20 km radius is too wide the areas were not homogeneous enough there is need to review this

19 April 202317

Lesson Learned Weather Insurance

Importance of collaborative efforts between producers and users

weather insurance for farmers in developing countries is feasible

Sustainability and scalability will not be achieved unless product development is owned locally and data limitations can be overcome

Successful weather risk markets can be created byndash Vigorous product delivery channels to farmers

linkages to finance or supply chainndash Local ownership through capacity building and

technology transfer19 April 202318

WAY FORWARD

Need for reliable verifiable and accessible

meteorological data Upgrade primary weather stations to fully automated

GSM-enabled stations ndash Chileka KIA Tembwe and Balaka already

automated Invest in automatic rain gauges with GSM

communication technology Set-up communications Hub in Blantyre to ensure

real-time reporting to GTS and transaction to stakeholders 19 April 202319

WAY FORWARD

In conclusion there is need for Governments to put in place appropriate policies and allocate sufficient resources (financial and human) for meteorological services to carry out their mandate effectively

19 April 202320

Thank you

for your attention

19 April 202321

Opportunities and Challenges

Traditional insurance products are largely underdeveloped

ndash Crop Insurance can be very expensive to administer

ndashIndividual Crop yields and field inspections needed

ndash Small size of the farms Malawi Meteorological Service has an

operational national maize production forecasting model which can be adapted for reinsurance

April 19 20238

April 19 20239

Outputs from Malawi Meteorological Officersquos national maize production forecasting model

Difference

2005 indexAverage

Opportunities and Challenges

Bad newsndash Thin network of operational weather stationsndash Lack of weather data in Crop growing areas

Good newsndash With data availability investment in infrastructure

can compliment the key requirements to operate a macro Insurance project

ndash A simple automated station with satellite communication capabilities is worth $12000)

April 19 202310

What is weather insurance

Financial protection based on the performance of a specified index in relation to a specified trigger

Offers protection against uncertain costs or revenues that result from volume volatilityndash Farmers are compensated against

unfavorable weather fluctuations that impact physical volumes produced

April 19 202311

Malawi Crop Weather Insurance Pilot Project

Weather based index insurance - recognised as one of the methodologies that can be used sustain livelihoods and reduce poverty as part of the MDGs

Malawi is one of the countries piloting the methodology

Due to high levels of poverty the farmers were not credit worth and hence they could not access loans to purchase inputs

The insurance helps farmers obtain financing necessary to obtain certified seeds which produce increased yields and revenues as well as greater resistance to disease

April 19 202312

PILOT DETAILS

Farmers1048713 NASFAM smallholder farmers organized in clubsTypically 10-20 members with joint liability for loan repayment1048713 Received Groundnut and Maize seed1048713 Live within 20 km of a Class A Weather Station Five stations in central Malawi are used for the pilot

Chitedze Kamuzu International Airport Kasungu Tembwe Nkhotakota

April 19 202313

Other stakeholders

InsurersInsurance Association of Malawi

FinanciersOpportunity International Bank of Malawi Malawi Rural Finance Corporation

Seed providerNASFAM from supplier Seed Co

Supplier of Climate and Weather data Malawi Meteorological Services

Project manager and technical advisor Commodity Risk Management Group of the World Bank

April 19 202314

Product packaging

Index linked loans Insurance covers cost of production as financed by a

Opportunity International Bank of Malawi (OIBM) or MRFC

OIBM and MRFC pay premiums and recover them through interest rate

In case of drought payment made to financial institution ndashfarmer relieved of the burden and is able to borrow for

the next season

April 19 202315

EXAMPLE LILONGWE CONTRACT MAIZE

Deficit Rainfall (mm)

Payou

t ($

)

PHASE 1Sowing amp Establishment

PHASE 3Yield Formation to Harvest

Deficit Rainfall (mm)

Payou

t ($

)

Deficit Rainfall (mm)

Payou

t ($

)

Cropping Calendar Sowing Window ampDynamic Start Date

PHASE 2Growth amp Flowering

Final Insurance Payout = min (Max Payout Phase 1 + 2 + 3 Payouts)

Phase 1 50 daysTrigger Level 40mmPayout per mm 580 MKWmmMaximum Payout 5800 MKW

Phase 2 30 daysTrigger Level 130mmPayout per mm 58 MKWmmMaximum Payout 5800 MKW

Phase 3 40 daysTrigger Level 25mmPayout per mm 1160 MKWmmMaximum Payout 5800 MKW

10th November ndash 10 January25 mm in 10 days

Lesson Learned Weather Insurance

Need to devote significant time and resources for proper communication and explanation with farmers insurance is new to most Malawians

Need greater ownership amongst participating organizations not over reliance on World Bank champion

Need for Malawi Met Service to understudy CRMGIRI in contract design activities

No major drought so full impact of weather insurance not been tested

20 km radius is too wide the areas were not homogeneous enough there is need to review this

19 April 202317

Lesson Learned Weather Insurance

Importance of collaborative efforts between producers and users

weather insurance for farmers in developing countries is feasible

Sustainability and scalability will not be achieved unless product development is owned locally and data limitations can be overcome

Successful weather risk markets can be created byndash Vigorous product delivery channels to farmers

linkages to finance or supply chainndash Local ownership through capacity building and

technology transfer19 April 202318

WAY FORWARD

Need for reliable verifiable and accessible

meteorological data Upgrade primary weather stations to fully automated

GSM-enabled stations ndash Chileka KIA Tembwe and Balaka already

automated Invest in automatic rain gauges with GSM

communication technology Set-up communications Hub in Blantyre to ensure

real-time reporting to GTS and transaction to stakeholders 19 April 202319

WAY FORWARD

In conclusion there is need for Governments to put in place appropriate policies and allocate sufficient resources (financial and human) for meteorological services to carry out their mandate effectively

19 April 202320

Thank you

for your attention

19 April 202321

April 19 20239

Outputs from Malawi Meteorological Officersquos national maize production forecasting model

Difference

2005 indexAverage

Opportunities and Challenges

Bad newsndash Thin network of operational weather stationsndash Lack of weather data in Crop growing areas

Good newsndash With data availability investment in infrastructure

can compliment the key requirements to operate a macro Insurance project

ndash A simple automated station with satellite communication capabilities is worth $12000)

April 19 202310

What is weather insurance

Financial protection based on the performance of a specified index in relation to a specified trigger

Offers protection against uncertain costs or revenues that result from volume volatilityndash Farmers are compensated against

unfavorable weather fluctuations that impact physical volumes produced

April 19 202311

Malawi Crop Weather Insurance Pilot Project

Weather based index insurance - recognised as one of the methodologies that can be used sustain livelihoods and reduce poverty as part of the MDGs

Malawi is one of the countries piloting the methodology

Due to high levels of poverty the farmers were not credit worth and hence they could not access loans to purchase inputs

The insurance helps farmers obtain financing necessary to obtain certified seeds which produce increased yields and revenues as well as greater resistance to disease

April 19 202312

PILOT DETAILS

Farmers1048713 NASFAM smallholder farmers organized in clubsTypically 10-20 members with joint liability for loan repayment1048713 Received Groundnut and Maize seed1048713 Live within 20 km of a Class A Weather Station Five stations in central Malawi are used for the pilot

Chitedze Kamuzu International Airport Kasungu Tembwe Nkhotakota

April 19 202313

Other stakeholders

InsurersInsurance Association of Malawi

FinanciersOpportunity International Bank of Malawi Malawi Rural Finance Corporation

Seed providerNASFAM from supplier Seed Co

Supplier of Climate and Weather data Malawi Meteorological Services

Project manager and technical advisor Commodity Risk Management Group of the World Bank

April 19 202314

Product packaging

Index linked loans Insurance covers cost of production as financed by a

Opportunity International Bank of Malawi (OIBM) or MRFC

OIBM and MRFC pay premiums and recover them through interest rate

In case of drought payment made to financial institution ndashfarmer relieved of the burden and is able to borrow for

the next season

April 19 202315

EXAMPLE LILONGWE CONTRACT MAIZE

Deficit Rainfall (mm)

Payou

t ($

)

PHASE 1Sowing amp Establishment

PHASE 3Yield Formation to Harvest

Deficit Rainfall (mm)

Payou

t ($

)

Deficit Rainfall (mm)

Payou

t ($

)

Cropping Calendar Sowing Window ampDynamic Start Date

PHASE 2Growth amp Flowering

Final Insurance Payout = min (Max Payout Phase 1 + 2 + 3 Payouts)

Phase 1 50 daysTrigger Level 40mmPayout per mm 580 MKWmmMaximum Payout 5800 MKW

Phase 2 30 daysTrigger Level 130mmPayout per mm 58 MKWmmMaximum Payout 5800 MKW

Phase 3 40 daysTrigger Level 25mmPayout per mm 1160 MKWmmMaximum Payout 5800 MKW

10th November ndash 10 January25 mm in 10 days

Lesson Learned Weather Insurance

Need to devote significant time and resources for proper communication and explanation with farmers insurance is new to most Malawians

Need greater ownership amongst participating organizations not over reliance on World Bank champion

Need for Malawi Met Service to understudy CRMGIRI in contract design activities

No major drought so full impact of weather insurance not been tested

20 km radius is too wide the areas were not homogeneous enough there is need to review this

19 April 202317

Lesson Learned Weather Insurance

Importance of collaborative efforts between producers and users

weather insurance for farmers in developing countries is feasible

Sustainability and scalability will not be achieved unless product development is owned locally and data limitations can be overcome

Successful weather risk markets can be created byndash Vigorous product delivery channels to farmers

linkages to finance or supply chainndash Local ownership through capacity building and

technology transfer19 April 202318

WAY FORWARD

Need for reliable verifiable and accessible

meteorological data Upgrade primary weather stations to fully automated

GSM-enabled stations ndash Chileka KIA Tembwe and Balaka already

automated Invest in automatic rain gauges with GSM

communication technology Set-up communications Hub in Blantyre to ensure

real-time reporting to GTS and transaction to stakeholders 19 April 202319

WAY FORWARD

In conclusion there is need for Governments to put in place appropriate policies and allocate sufficient resources (financial and human) for meteorological services to carry out their mandate effectively

19 April 202320

Thank you

for your attention

19 April 202321

Opportunities and Challenges

Bad newsndash Thin network of operational weather stationsndash Lack of weather data in Crop growing areas

Good newsndash With data availability investment in infrastructure

can compliment the key requirements to operate a macro Insurance project

ndash A simple automated station with satellite communication capabilities is worth $12000)

April 19 202310

What is weather insurance

Financial protection based on the performance of a specified index in relation to a specified trigger

Offers protection against uncertain costs or revenues that result from volume volatilityndash Farmers are compensated against

unfavorable weather fluctuations that impact physical volumes produced

April 19 202311

Malawi Crop Weather Insurance Pilot Project

Weather based index insurance - recognised as one of the methodologies that can be used sustain livelihoods and reduce poverty as part of the MDGs

Malawi is one of the countries piloting the methodology

Due to high levels of poverty the farmers were not credit worth and hence they could not access loans to purchase inputs

The insurance helps farmers obtain financing necessary to obtain certified seeds which produce increased yields and revenues as well as greater resistance to disease

April 19 202312

PILOT DETAILS

Farmers1048713 NASFAM smallholder farmers organized in clubsTypically 10-20 members with joint liability for loan repayment1048713 Received Groundnut and Maize seed1048713 Live within 20 km of a Class A Weather Station Five stations in central Malawi are used for the pilot

Chitedze Kamuzu International Airport Kasungu Tembwe Nkhotakota

April 19 202313

Other stakeholders

InsurersInsurance Association of Malawi

FinanciersOpportunity International Bank of Malawi Malawi Rural Finance Corporation

Seed providerNASFAM from supplier Seed Co

Supplier of Climate and Weather data Malawi Meteorological Services

Project manager and technical advisor Commodity Risk Management Group of the World Bank

April 19 202314

Product packaging

Index linked loans Insurance covers cost of production as financed by a

Opportunity International Bank of Malawi (OIBM) or MRFC

OIBM and MRFC pay premiums and recover them through interest rate

In case of drought payment made to financial institution ndashfarmer relieved of the burden and is able to borrow for

the next season

April 19 202315

EXAMPLE LILONGWE CONTRACT MAIZE

Deficit Rainfall (mm)

Payou

t ($

)

PHASE 1Sowing amp Establishment

PHASE 3Yield Formation to Harvest

Deficit Rainfall (mm)

Payou

t ($

)

Deficit Rainfall (mm)

Payou

t ($

)

Cropping Calendar Sowing Window ampDynamic Start Date

PHASE 2Growth amp Flowering

Final Insurance Payout = min (Max Payout Phase 1 + 2 + 3 Payouts)

Phase 1 50 daysTrigger Level 40mmPayout per mm 580 MKWmmMaximum Payout 5800 MKW

Phase 2 30 daysTrigger Level 130mmPayout per mm 58 MKWmmMaximum Payout 5800 MKW

Phase 3 40 daysTrigger Level 25mmPayout per mm 1160 MKWmmMaximum Payout 5800 MKW

10th November ndash 10 January25 mm in 10 days

Lesson Learned Weather Insurance

Need to devote significant time and resources for proper communication and explanation with farmers insurance is new to most Malawians

Need greater ownership amongst participating organizations not over reliance on World Bank champion

Need for Malawi Met Service to understudy CRMGIRI in contract design activities

No major drought so full impact of weather insurance not been tested

20 km radius is too wide the areas were not homogeneous enough there is need to review this

19 April 202317

Lesson Learned Weather Insurance

Importance of collaborative efforts between producers and users

weather insurance for farmers in developing countries is feasible

Sustainability and scalability will not be achieved unless product development is owned locally and data limitations can be overcome

Successful weather risk markets can be created byndash Vigorous product delivery channels to farmers

linkages to finance or supply chainndash Local ownership through capacity building and

technology transfer19 April 202318

WAY FORWARD

Need for reliable verifiable and accessible

meteorological data Upgrade primary weather stations to fully automated

GSM-enabled stations ndash Chileka KIA Tembwe and Balaka already

automated Invest in automatic rain gauges with GSM

communication technology Set-up communications Hub in Blantyre to ensure

real-time reporting to GTS and transaction to stakeholders 19 April 202319

WAY FORWARD

In conclusion there is need for Governments to put in place appropriate policies and allocate sufficient resources (financial and human) for meteorological services to carry out their mandate effectively

19 April 202320

Thank you

for your attention

19 April 202321

What is weather insurance

Financial protection based on the performance of a specified index in relation to a specified trigger

Offers protection against uncertain costs or revenues that result from volume volatilityndash Farmers are compensated against

unfavorable weather fluctuations that impact physical volumes produced

April 19 202311

Malawi Crop Weather Insurance Pilot Project

Weather based index insurance - recognised as one of the methodologies that can be used sustain livelihoods and reduce poverty as part of the MDGs

Malawi is one of the countries piloting the methodology

Due to high levels of poverty the farmers were not credit worth and hence they could not access loans to purchase inputs

The insurance helps farmers obtain financing necessary to obtain certified seeds which produce increased yields and revenues as well as greater resistance to disease

April 19 202312

PILOT DETAILS

Farmers1048713 NASFAM smallholder farmers organized in clubsTypically 10-20 members with joint liability for loan repayment1048713 Received Groundnut and Maize seed1048713 Live within 20 km of a Class A Weather Station Five stations in central Malawi are used for the pilot

Chitedze Kamuzu International Airport Kasungu Tembwe Nkhotakota

April 19 202313

Other stakeholders

InsurersInsurance Association of Malawi

FinanciersOpportunity International Bank of Malawi Malawi Rural Finance Corporation

Seed providerNASFAM from supplier Seed Co

Supplier of Climate and Weather data Malawi Meteorological Services

Project manager and technical advisor Commodity Risk Management Group of the World Bank

April 19 202314

Product packaging

Index linked loans Insurance covers cost of production as financed by a

Opportunity International Bank of Malawi (OIBM) or MRFC

OIBM and MRFC pay premiums and recover them through interest rate

In case of drought payment made to financial institution ndashfarmer relieved of the burden and is able to borrow for

the next season

April 19 202315

EXAMPLE LILONGWE CONTRACT MAIZE

Deficit Rainfall (mm)

Payou

t ($

)

PHASE 1Sowing amp Establishment

PHASE 3Yield Formation to Harvest

Deficit Rainfall (mm)

Payou

t ($

)

Deficit Rainfall (mm)

Payou

t ($

)

Cropping Calendar Sowing Window ampDynamic Start Date

PHASE 2Growth amp Flowering

Final Insurance Payout = min (Max Payout Phase 1 + 2 + 3 Payouts)

Phase 1 50 daysTrigger Level 40mmPayout per mm 580 MKWmmMaximum Payout 5800 MKW

Phase 2 30 daysTrigger Level 130mmPayout per mm 58 MKWmmMaximum Payout 5800 MKW

Phase 3 40 daysTrigger Level 25mmPayout per mm 1160 MKWmmMaximum Payout 5800 MKW

10th November ndash 10 January25 mm in 10 days

Lesson Learned Weather Insurance

Need to devote significant time and resources for proper communication and explanation with farmers insurance is new to most Malawians

Need greater ownership amongst participating organizations not over reliance on World Bank champion

Need for Malawi Met Service to understudy CRMGIRI in contract design activities

No major drought so full impact of weather insurance not been tested

20 km radius is too wide the areas were not homogeneous enough there is need to review this

19 April 202317

Lesson Learned Weather Insurance

Importance of collaborative efforts between producers and users

weather insurance for farmers in developing countries is feasible

Sustainability and scalability will not be achieved unless product development is owned locally and data limitations can be overcome

Successful weather risk markets can be created byndash Vigorous product delivery channels to farmers

linkages to finance or supply chainndash Local ownership through capacity building and

technology transfer19 April 202318

WAY FORWARD

Need for reliable verifiable and accessible

meteorological data Upgrade primary weather stations to fully automated

GSM-enabled stations ndash Chileka KIA Tembwe and Balaka already

automated Invest in automatic rain gauges with GSM

communication technology Set-up communications Hub in Blantyre to ensure

real-time reporting to GTS and transaction to stakeholders 19 April 202319

WAY FORWARD

In conclusion there is need for Governments to put in place appropriate policies and allocate sufficient resources (financial and human) for meteorological services to carry out their mandate effectively

19 April 202320

Thank you

for your attention

19 April 202321

Malawi Crop Weather Insurance Pilot Project

Weather based index insurance - recognised as one of the methodologies that can be used sustain livelihoods and reduce poverty as part of the MDGs

Malawi is one of the countries piloting the methodology

Due to high levels of poverty the farmers were not credit worth and hence they could not access loans to purchase inputs

The insurance helps farmers obtain financing necessary to obtain certified seeds which produce increased yields and revenues as well as greater resistance to disease

April 19 202312

PILOT DETAILS

Farmers1048713 NASFAM smallholder farmers organized in clubsTypically 10-20 members with joint liability for loan repayment1048713 Received Groundnut and Maize seed1048713 Live within 20 km of a Class A Weather Station Five stations in central Malawi are used for the pilot

Chitedze Kamuzu International Airport Kasungu Tembwe Nkhotakota

April 19 202313

Other stakeholders

InsurersInsurance Association of Malawi

FinanciersOpportunity International Bank of Malawi Malawi Rural Finance Corporation

Seed providerNASFAM from supplier Seed Co

Supplier of Climate and Weather data Malawi Meteorological Services

Project manager and technical advisor Commodity Risk Management Group of the World Bank

April 19 202314

Product packaging

Index linked loans Insurance covers cost of production as financed by a

Opportunity International Bank of Malawi (OIBM) or MRFC

OIBM and MRFC pay premiums and recover them through interest rate

In case of drought payment made to financial institution ndashfarmer relieved of the burden and is able to borrow for

the next season

April 19 202315

EXAMPLE LILONGWE CONTRACT MAIZE

Deficit Rainfall (mm)

Payou

t ($

)

PHASE 1Sowing amp Establishment

PHASE 3Yield Formation to Harvest

Deficit Rainfall (mm)

Payou

t ($

)

Deficit Rainfall (mm)

Payou

t ($

)

Cropping Calendar Sowing Window ampDynamic Start Date

PHASE 2Growth amp Flowering

Final Insurance Payout = min (Max Payout Phase 1 + 2 + 3 Payouts)

Phase 1 50 daysTrigger Level 40mmPayout per mm 580 MKWmmMaximum Payout 5800 MKW

Phase 2 30 daysTrigger Level 130mmPayout per mm 58 MKWmmMaximum Payout 5800 MKW

Phase 3 40 daysTrigger Level 25mmPayout per mm 1160 MKWmmMaximum Payout 5800 MKW

10th November ndash 10 January25 mm in 10 days

Lesson Learned Weather Insurance

Need to devote significant time and resources for proper communication and explanation with farmers insurance is new to most Malawians

Need greater ownership amongst participating organizations not over reliance on World Bank champion

Need for Malawi Met Service to understudy CRMGIRI in contract design activities

No major drought so full impact of weather insurance not been tested

20 km radius is too wide the areas were not homogeneous enough there is need to review this

19 April 202317

Lesson Learned Weather Insurance

Importance of collaborative efforts between producers and users

weather insurance for farmers in developing countries is feasible

Sustainability and scalability will not be achieved unless product development is owned locally and data limitations can be overcome

Successful weather risk markets can be created byndash Vigorous product delivery channels to farmers

linkages to finance or supply chainndash Local ownership through capacity building and

technology transfer19 April 202318

WAY FORWARD

Need for reliable verifiable and accessible

meteorological data Upgrade primary weather stations to fully automated

GSM-enabled stations ndash Chileka KIA Tembwe and Balaka already

automated Invest in automatic rain gauges with GSM

communication technology Set-up communications Hub in Blantyre to ensure

real-time reporting to GTS and transaction to stakeholders 19 April 202319

WAY FORWARD

In conclusion there is need for Governments to put in place appropriate policies and allocate sufficient resources (financial and human) for meteorological services to carry out their mandate effectively

19 April 202320

Thank you

for your attention

19 April 202321

PILOT DETAILS

Farmers1048713 NASFAM smallholder farmers organized in clubsTypically 10-20 members with joint liability for loan repayment1048713 Received Groundnut and Maize seed1048713 Live within 20 km of a Class A Weather Station Five stations in central Malawi are used for the pilot

Chitedze Kamuzu International Airport Kasungu Tembwe Nkhotakota

April 19 202313

Other stakeholders

InsurersInsurance Association of Malawi

FinanciersOpportunity International Bank of Malawi Malawi Rural Finance Corporation

Seed providerNASFAM from supplier Seed Co

Supplier of Climate and Weather data Malawi Meteorological Services

Project manager and technical advisor Commodity Risk Management Group of the World Bank

April 19 202314

Product packaging

Index linked loans Insurance covers cost of production as financed by a

Opportunity International Bank of Malawi (OIBM) or MRFC

OIBM and MRFC pay premiums and recover them through interest rate

In case of drought payment made to financial institution ndashfarmer relieved of the burden and is able to borrow for

the next season

April 19 202315

EXAMPLE LILONGWE CONTRACT MAIZE

Deficit Rainfall (mm)

Payou

t ($

)

PHASE 1Sowing amp Establishment

PHASE 3Yield Formation to Harvest

Deficit Rainfall (mm)

Payou

t ($

)

Deficit Rainfall (mm)

Payou

t ($

)

Cropping Calendar Sowing Window ampDynamic Start Date

PHASE 2Growth amp Flowering

Final Insurance Payout = min (Max Payout Phase 1 + 2 + 3 Payouts)

Phase 1 50 daysTrigger Level 40mmPayout per mm 580 MKWmmMaximum Payout 5800 MKW

Phase 2 30 daysTrigger Level 130mmPayout per mm 58 MKWmmMaximum Payout 5800 MKW

Phase 3 40 daysTrigger Level 25mmPayout per mm 1160 MKWmmMaximum Payout 5800 MKW

10th November ndash 10 January25 mm in 10 days

Lesson Learned Weather Insurance

Need to devote significant time and resources for proper communication and explanation with farmers insurance is new to most Malawians

Need greater ownership amongst participating organizations not over reliance on World Bank champion

Need for Malawi Met Service to understudy CRMGIRI in contract design activities

No major drought so full impact of weather insurance not been tested

20 km radius is too wide the areas were not homogeneous enough there is need to review this

19 April 202317

Lesson Learned Weather Insurance

Importance of collaborative efforts between producers and users

weather insurance for farmers in developing countries is feasible

Sustainability and scalability will not be achieved unless product development is owned locally and data limitations can be overcome

Successful weather risk markets can be created byndash Vigorous product delivery channels to farmers

linkages to finance or supply chainndash Local ownership through capacity building and

technology transfer19 April 202318

WAY FORWARD

Need for reliable verifiable and accessible

meteorological data Upgrade primary weather stations to fully automated

GSM-enabled stations ndash Chileka KIA Tembwe and Balaka already

automated Invest in automatic rain gauges with GSM

communication technology Set-up communications Hub in Blantyre to ensure

real-time reporting to GTS and transaction to stakeholders 19 April 202319

WAY FORWARD

In conclusion there is need for Governments to put in place appropriate policies and allocate sufficient resources (financial and human) for meteorological services to carry out their mandate effectively

19 April 202320

Thank you

for your attention

19 April 202321

Other stakeholders

InsurersInsurance Association of Malawi

FinanciersOpportunity International Bank of Malawi Malawi Rural Finance Corporation

Seed providerNASFAM from supplier Seed Co

Supplier of Climate and Weather data Malawi Meteorological Services

Project manager and technical advisor Commodity Risk Management Group of the World Bank

April 19 202314

Product packaging

Index linked loans Insurance covers cost of production as financed by a

Opportunity International Bank of Malawi (OIBM) or MRFC

OIBM and MRFC pay premiums and recover them through interest rate

In case of drought payment made to financial institution ndashfarmer relieved of the burden and is able to borrow for

the next season

April 19 202315

EXAMPLE LILONGWE CONTRACT MAIZE

Deficit Rainfall (mm)

Payou

t ($

)

PHASE 1Sowing amp Establishment

PHASE 3Yield Formation to Harvest

Deficit Rainfall (mm)

Payou

t ($

)

Deficit Rainfall (mm)

Payou

t ($

)

Cropping Calendar Sowing Window ampDynamic Start Date

PHASE 2Growth amp Flowering

Final Insurance Payout = min (Max Payout Phase 1 + 2 + 3 Payouts)

Phase 1 50 daysTrigger Level 40mmPayout per mm 580 MKWmmMaximum Payout 5800 MKW

Phase 2 30 daysTrigger Level 130mmPayout per mm 58 MKWmmMaximum Payout 5800 MKW

Phase 3 40 daysTrigger Level 25mmPayout per mm 1160 MKWmmMaximum Payout 5800 MKW

10th November ndash 10 January25 mm in 10 days

Lesson Learned Weather Insurance

Need to devote significant time and resources for proper communication and explanation with farmers insurance is new to most Malawians

Need greater ownership amongst participating organizations not over reliance on World Bank champion

Need for Malawi Met Service to understudy CRMGIRI in contract design activities

No major drought so full impact of weather insurance not been tested

20 km radius is too wide the areas were not homogeneous enough there is need to review this

19 April 202317

Lesson Learned Weather Insurance

Importance of collaborative efforts between producers and users

weather insurance for farmers in developing countries is feasible

Sustainability and scalability will not be achieved unless product development is owned locally and data limitations can be overcome

Successful weather risk markets can be created byndash Vigorous product delivery channels to farmers

linkages to finance or supply chainndash Local ownership through capacity building and

technology transfer19 April 202318

WAY FORWARD

Need for reliable verifiable and accessible

meteorological data Upgrade primary weather stations to fully automated

GSM-enabled stations ndash Chileka KIA Tembwe and Balaka already

automated Invest in automatic rain gauges with GSM

communication technology Set-up communications Hub in Blantyre to ensure

real-time reporting to GTS and transaction to stakeholders 19 April 202319

WAY FORWARD

In conclusion there is need for Governments to put in place appropriate policies and allocate sufficient resources (financial and human) for meteorological services to carry out their mandate effectively

19 April 202320

Thank you

for your attention

19 April 202321

Product packaging

Index linked loans Insurance covers cost of production as financed by a

Opportunity International Bank of Malawi (OIBM) or MRFC

OIBM and MRFC pay premiums and recover them through interest rate

In case of drought payment made to financial institution ndashfarmer relieved of the burden and is able to borrow for

the next season

April 19 202315

EXAMPLE LILONGWE CONTRACT MAIZE

Deficit Rainfall (mm)

Payou

t ($

)

PHASE 1Sowing amp Establishment

PHASE 3Yield Formation to Harvest

Deficit Rainfall (mm)

Payou

t ($

)

Deficit Rainfall (mm)

Payou

t ($

)

Cropping Calendar Sowing Window ampDynamic Start Date

PHASE 2Growth amp Flowering

Final Insurance Payout = min (Max Payout Phase 1 + 2 + 3 Payouts)

Phase 1 50 daysTrigger Level 40mmPayout per mm 580 MKWmmMaximum Payout 5800 MKW

Phase 2 30 daysTrigger Level 130mmPayout per mm 58 MKWmmMaximum Payout 5800 MKW

Phase 3 40 daysTrigger Level 25mmPayout per mm 1160 MKWmmMaximum Payout 5800 MKW

10th November ndash 10 January25 mm in 10 days

Lesson Learned Weather Insurance

Need to devote significant time and resources for proper communication and explanation with farmers insurance is new to most Malawians

Need greater ownership amongst participating organizations not over reliance on World Bank champion

Need for Malawi Met Service to understudy CRMGIRI in contract design activities

No major drought so full impact of weather insurance not been tested

20 km radius is too wide the areas were not homogeneous enough there is need to review this

19 April 202317

Lesson Learned Weather Insurance

Importance of collaborative efforts between producers and users

weather insurance for farmers in developing countries is feasible

Sustainability and scalability will not be achieved unless product development is owned locally and data limitations can be overcome

Successful weather risk markets can be created byndash Vigorous product delivery channels to farmers

linkages to finance or supply chainndash Local ownership through capacity building and

technology transfer19 April 202318

WAY FORWARD

Need for reliable verifiable and accessible

meteorological data Upgrade primary weather stations to fully automated

GSM-enabled stations ndash Chileka KIA Tembwe and Balaka already

automated Invest in automatic rain gauges with GSM

communication technology Set-up communications Hub in Blantyre to ensure

real-time reporting to GTS and transaction to stakeholders 19 April 202319

WAY FORWARD

In conclusion there is need for Governments to put in place appropriate policies and allocate sufficient resources (financial and human) for meteorological services to carry out their mandate effectively

19 April 202320

Thank you

for your attention

19 April 202321

EXAMPLE LILONGWE CONTRACT MAIZE

Deficit Rainfall (mm)

Payou

t ($

)

PHASE 1Sowing amp Establishment

PHASE 3Yield Formation to Harvest

Deficit Rainfall (mm)

Payou

t ($

)

Deficit Rainfall (mm)

Payou

t ($

)

Cropping Calendar Sowing Window ampDynamic Start Date

PHASE 2Growth amp Flowering

Final Insurance Payout = min (Max Payout Phase 1 + 2 + 3 Payouts)

Phase 1 50 daysTrigger Level 40mmPayout per mm 580 MKWmmMaximum Payout 5800 MKW

Phase 2 30 daysTrigger Level 130mmPayout per mm 58 MKWmmMaximum Payout 5800 MKW

Phase 3 40 daysTrigger Level 25mmPayout per mm 1160 MKWmmMaximum Payout 5800 MKW

10th November ndash 10 January25 mm in 10 days

Lesson Learned Weather Insurance

Need to devote significant time and resources for proper communication and explanation with farmers insurance is new to most Malawians

Need greater ownership amongst participating organizations not over reliance on World Bank champion

Need for Malawi Met Service to understudy CRMGIRI in contract design activities

No major drought so full impact of weather insurance not been tested

20 km radius is too wide the areas were not homogeneous enough there is need to review this

19 April 202317

Lesson Learned Weather Insurance

Importance of collaborative efforts between producers and users

weather insurance for farmers in developing countries is feasible

Sustainability and scalability will not be achieved unless product development is owned locally and data limitations can be overcome

Successful weather risk markets can be created byndash Vigorous product delivery channels to farmers

linkages to finance or supply chainndash Local ownership through capacity building and

technology transfer19 April 202318

WAY FORWARD

Need for reliable verifiable and accessible

meteorological data Upgrade primary weather stations to fully automated

GSM-enabled stations ndash Chileka KIA Tembwe and Balaka already

automated Invest in automatic rain gauges with GSM

communication technology Set-up communications Hub in Blantyre to ensure

real-time reporting to GTS and transaction to stakeholders 19 April 202319

WAY FORWARD

In conclusion there is need for Governments to put in place appropriate policies and allocate sufficient resources (financial and human) for meteorological services to carry out their mandate effectively

19 April 202320

Thank you

for your attention

19 April 202321

Lesson Learned Weather Insurance

Need to devote significant time and resources for proper communication and explanation with farmers insurance is new to most Malawians

Need greater ownership amongst participating organizations not over reliance on World Bank champion

Need for Malawi Met Service to understudy CRMGIRI in contract design activities

No major drought so full impact of weather insurance not been tested

20 km radius is too wide the areas were not homogeneous enough there is need to review this

19 April 202317

Lesson Learned Weather Insurance

Importance of collaborative efforts between producers and users

weather insurance for farmers in developing countries is feasible

Sustainability and scalability will not be achieved unless product development is owned locally and data limitations can be overcome

Successful weather risk markets can be created byndash Vigorous product delivery channels to farmers

linkages to finance or supply chainndash Local ownership through capacity building and

technology transfer19 April 202318

WAY FORWARD

Need for reliable verifiable and accessible

meteorological data Upgrade primary weather stations to fully automated

GSM-enabled stations ndash Chileka KIA Tembwe and Balaka already

automated Invest in automatic rain gauges with GSM

communication technology Set-up communications Hub in Blantyre to ensure

real-time reporting to GTS and transaction to stakeholders 19 April 202319

WAY FORWARD

In conclusion there is need for Governments to put in place appropriate policies and allocate sufficient resources (financial and human) for meteorological services to carry out their mandate effectively

19 April 202320

Thank you

for your attention

19 April 202321

Lesson Learned Weather Insurance

Importance of collaborative efforts between producers and users

weather insurance for farmers in developing countries is feasible

Sustainability and scalability will not be achieved unless product development is owned locally and data limitations can be overcome

Successful weather risk markets can be created byndash Vigorous product delivery channels to farmers

linkages to finance or supply chainndash Local ownership through capacity building and

technology transfer19 April 202318

WAY FORWARD

Need for reliable verifiable and accessible

meteorological data Upgrade primary weather stations to fully automated

GSM-enabled stations ndash Chileka KIA Tembwe and Balaka already

automated Invest in automatic rain gauges with GSM

communication technology Set-up communications Hub in Blantyre to ensure

real-time reporting to GTS and transaction to stakeholders 19 April 202319

WAY FORWARD

In conclusion there is need for Governments to put in place appropriate policies and allocate sufficient resources (financial and human) for meteorological services to carry out their mandate effectively

19 April 202320

Thank you

for your attention

19 April 202321

WAY FORWARD

Need for reliable verifiable and accessible

meteorological data Upgrade primary weather stations to fully automated

GSM-enabled stations ndash Chileka KIA Tembwe and Balaka already

automated Invest in automatic rain gauges with GSM

communication technology Set-up communications Hub in Blantyre to ensure

real-time reporting to GTS and transaction to stakeholders 19 April 202319

WAY FORWARD

In conclusion there is need for Governments to put in place appropriate policies and allocate sufficient resources (financial and human) for meteorological services to carry out their mandate effectively

19 April 202320

Thank you

for your attention

19 April 202321

WAY FORWARD

In conclusion there is need for Governments to put in place appropriate policies and allocate sufficient resources (financial and human) for meteorological services to carry out their mandate effectively

19 April 202320

Thank you

for your attention

19 April 202321

Thank you

for your attention

19 April 202321