[Sdi-latinamericacaribbean] drought insurance in Nicaragua relying on geospatial data

[Kate Lance]

http://gisweb.ciat.cgiar.org/sig/download/RESEARCHREPORT_Final_01JE06.pdf  (2.25 MB)
A System of Drought Insurance for Poverty Alleviation in Rural Areas 
This CIAT project, supported by the German Bundesministerium für wirtschaftliche Zusammenarbeit und Entwicklung (BMZ) and the Gesellschaft für Technische Zusammenarbeit (GTZ), with the collaboration of Catholic Relief Services (CRS), studied the feasibility of a practical method of drought insurance that is self-sustaining and ready for use by poor farmers, NGOs, or other development organizations. Although insurance is widely used by farmers in developed countries to protect them against weather risk, weather insurance has rarely been offered to poor smallholder farmers in developing countries.
 
Weather insurance was developed for drybean farmers in Nicaragua, involving a methodology to establish the causal relation between insured weather event and crop loss in the absence of actual weather and yield data. The method coupled generated weather data to crop simulation and consisted of three stages: generation of weather data, relying on the weather generator MarkSim; simulation of crop yields using the generated weather data; and estimation of the minimum water (rainfall) needs of the crop at fixed intervals during its growth and development.


 
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