One World to Protect

Crop

Health and Life

Insurance Engineering and Services

Technical assistance Feasibility and Market Studies Risk analysis and definition of guarantees

Product development Micro-reinsurance brokerage

Products Key Success Factors

Innovative products

Products tailored to needs and elaborated with the clients and endbeneficiaries

Simplicity in implementation and management

Strong partnerships with leading insurers and reinsurers

Product development Micro-reinsurance brokerage

Vision

The objective of PlaNet Guarantee is to enable populations excluded from traditional insurance systems and not benefitting from social protection mechanisms to protect themselves against all types of risks: health, natural catastrophe, death, disability, accident,…

I. Overview of PlaNet Guaranteea. Vision

As an insurance broker, PlaNet Guarantee has developed a tailored social insurance offer and proposes a range of services in technical assitance and risk analysis.

I. Overview of PlaNet Guaranteeb. Organization and key figures

100% 100% 100%

International

PlaNet Guarantee Senegal

PlaNet Guarantee Burkina Faso

PlaNet Guarantee Mali

PlaNet Guarantee Ivory Coast

100%

70%10% 20%

INTRODUCTION

• Broker and advisor specialized in inclusive insurance and social protection since 2007

• Development of insurance products for people excluded from the conventional insurance system

• Design and implementation of technological solutions to push the boundaries of accessibility of insurance

• Growth sustained by breakthrough innovations in insurance and microinsurance with the use of index technologies and social networks

KEY FIGURES

• Headcount: 30

• Ongoing activities in 12 countries=> Fully licensed broker in 4 countries: Burkina Faso, Ivory Coast, Mali and Senegal (Benin in progress)

• 900,000 cumulated policies since 2008 representing 4 million beneficiaries

• 200,000 policies in 2014 via 50 insured groups in West Africa

• Headquartered in France with 1 operational platform based in Dakar employing 10 people

ORGANIZATION

Variability in agricultural seasons and

extreme climatic events

Agricultural insurance indispensable to protect farmers and strengthen the agricultural sector:

• By protecting the portfolio of banks and microfinance institutions, insurance secures the access to credit and allows to increase the development of agricultural activities.

• By increasing access to credit and securing the financial sector , agricultural insurance can attract more financing into the sectors(funds invest in banks /MFIs).

Food insecurity

Revenue LossesExcluded from

contracting another credit

Barrier to investing in

better quality seeds and equipment

Increased risk of bad harvests

Farmers forced to dip into their

savings to sustain

themselves

Inability to pay back the credit

II. Overview of index insurancea. Why Crop Insurance

The problem faced by farmers:

Index insurance is more adapted to the emerging economy contexts than is traditional insurance

Insurance which pays out in function of individual risk is not feasible – administration costs and moral hazard

Index Insurance: Indemnity on the basis of

attaining a certain trigger level of reference

Types of indexes: average yield or climate Indexes (rain, temperature, wind, etc.)

Data sources: Satellite, yields, Weather Stations

BENEFITS OF INDEX INSURANCE

Lower costs = lower premiums

Coverage of the hardest risks to manage

Decrease of moral hazard and adverse selection

Possibility to adapt the cost of insurance to purchasing power of producers

Automatic claims payout

II. Overview of index insuranceb. What is index Insurance

6

PlaNet Gurantee’s insurance solutions mitigate the impact of climate events for all players in the value chain

Insurance mitigates the impact of climate events and secures future production...

...stabilizing income in the whole agriculture value chain

DroughtsFloods

Temperature

Y-1 Y0 Y1 Y2 Y3

RevenueNot insured

RevenueInsured

Insurance coverage

Level of Production & Revenue

FarmersStabilized income Improved food security Secured future production (seed purchase) Secured financing options (stable income)

Banks & MFIsReduced Risk in the Portfolio Reduced write-offs & recovery costs Extended lending business

Agriculture Businesses (seeds, fertilizers)Stabilized Demand/ Revenues Stabilized sales to farmers Hedged revenue decline Grown customer base (subsidising insurance of farmers)

Production Companies (millers, cotton companies...)Stabilized Supply/ Costs Stabilized supply (decreased duration of downturn) Hedged costs of climate events Grown supplier base (subsidising insurance of farmers)

II. Overview of index insuranceC. Positive Value Chain Impact

7

Overall Objective:

By protecting the portfolio of banks and microfinance institutions, insurance secures the access to credit and allows to increase the development of agricultural activities.

Moreover, by increasing access to credit and securing the financial sector the projects contributes to growth of the overall agricultural sector.

Specific Objectives: Propose agricultural insurance solutions adapted to the needs of farmers Develop a viable agricultural insurance model Improve the financing of agriculture in the targeted countries Develop insurance culture amongst the population of farmers

Favor access of farmers to insurance in order to reduce the fluctuation in agricultural income and secure the financing mechanism of agriculture

III. Assurance Récolte Sahela. Overview - Objectives

A farmer buys inputs from an agri-dealer or takes out

a loan from an MFI/bank

The premium is included in the

price of the inputs or the loan

The premium is collected at the

time of loan contraction and

transferred to the insurer by the

distribution channel

A list of all the adherents is

transferred to PG who manages the

process

In times of poor harvest, the index is

automatically triggered based on

weather or yield conditions

The insurer pays out to the insured

parties

Management of the entire process done by PlaNet Guarantee

III. Assurance Récolte Sahelb. Example of How it Works

Product Design Training

Distribution Awareness raising

III. Assurance Récolte SahelC. Activities – Main Activities

Before the start of the Assurance Récolte Sahel project by PlaNet Guarantee there was no existing initiative dedicated to index crop insurance in Francophone West Africa.

PlaNet Guarantee undertook the task of raising awareness on insurance in general and index insurance more particularly

Awareness campaigns and training were run amongst farmers, distribution networks, local insurers, insurance regulators, governments etc.

III. Assurance Récolte SahelC. Activities - Raising Awareness Examples

Types of indexes developed

Maize / rainfall deficit index based on satellite information (RE)

Developed with EARS. 6000 villages covered Distribution on-going.

Cotton / rainfall deficit index based on satellite information (RE) In development. 150 villages covered.

Main distribution Partners

COPROCUMA Mali-Sud 3 (Agricultural cooperative), BIM-SA(Commercial bank, subsiduary of Attijariwafa bank group), Compagnie Malienne pour le Développement du Textile (CMDT_UNSCPC), Soro Yiriwaso – (MFI)

III. Assurance Récolte Saheld. Country Overview - Mali

Types of indexes developed:

Maïze / rainfall deficit index based on satellite information (RE). Developed with EARS. 6000 villages covered Distribution on-going.

Coton SOFITEX / average yield index being developed with I4. Potentialto cover 1500 cooperatives

Coton SN CITEC / rainfall deficit index based on satellite information (RE)in development. 12 zones covered.

Main Distribution Partners:

Union Nationale des Producteurs de Coton / SOFITEX / Ecobank, Société Nouvelle Huilerie and Savonnerie CITEC, EcobankBurkina Faso, Réseau des Caisses Populaires du Burkina (RCPB - Leading MFI with almost 80% of market)

Other partners : small MFIs (APFI, MFP, URCCOM), cooperatives (FEPAB, Impact Ecologie) and input distributor (Agrodia).

II. Assurance Récolte Saheld. Country Overview – Burkina Faso

Types of indexes developed:

Maize, groundut, Millet / 3 rainfall deficit indexes developed with CIRAD and based on rainfall measured through a network of 50 weather stations

After 2 years of follow-up of the index by field visits, ANACIM develops this year a GPRS data transmission mechanism. The collaboration project with USAID and the World Bank provides each year to expand the coverage area by installing new weather stations

Main distribution Partners:

CCPA et RNCPS. Rural coopeartives – groundnut producers, FEPROMAS (Rural cooperative – maize producers), CaisseNationale de Crédit Agricole du Sénégal (CNCAS A main financial institution), ACEP and PAMECAS (MFIs active in input financing)

The partnership developed with the project " R4 Rural Resilience Initiative in Senegal " initiated by OXFAM is the first opportunity for the ARS Dakar platform for the management of an insurance portfolio developed outside the PlaNetGuarantee program.

III. Assurance Récolte Saheld. Country Overview - Senegal

Exploratory missions on cocoa and cotton

In cocoa, risks mainly linked to illness. Average age of producers and of plantations is high

Cotton sector represents a strong potential

Large agribusiness interested in meso approach to insurance

PlaNet Guarantee initiative on social Protection for farmers

Large agribusinesses, growingly concerned with the well-being of their farmer networks, are ready to participate in the development of health insurance and social protection for their farmers

PlaNet Guarantee is working on a PPP model to cover major health risks and favour the development of the health care network

III. Assurance Récolte Saheld. Country Overview – Côte d’Ivoire

Interview of Nimna Diayite, president of maize producerscooperative (FEPROMAS), Senegal, 2013.

How would you qualify your collaboration with PlaNet Guarantee?

Our partnership with PlaNet Guarantee since 2012 has beenreally positive and we hope to strengthen it in the upcomingyears. We have been for a long time in search of a way to protectourselves against the risk of bad harvest due to climate hazard,and PlaNet Guarantee brought us the index insurance solution.

What is the added value of the 4970 dollars your cooperativereceived as payout from PlaNet Guarantee?

This compensation has been really useful; it allowed us to repaythe credit to the bank and save some money that will serve forother useful purposes. We hope this initiative will be extendedto farmers that couldn’t benefit from it this year. Before the startof the ARS project by PlaNet Guarantee there was no existinginitiative dedicated to index crop insurance.

III. Assurance Récolte Sahele. Partners - Client Testimony

Thank you!

PlaNet Guarantee111 Boulevard Pereire

75017 Paris France

Anaar KaraR&D Director

PlaNet Guaranteeakara@planetguarantee.org…………………………

Mob : +33 (0)6.66.02.89.25