EMW2015; Anaar Kara; PlaNet Guarantee

1. One World to Protect

2. 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 end
beneficiaries
 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 Guarantee
a. 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.

3. I. Overview of PlaNet Guarantee
b. 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

4. 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 Losses
Excluded 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 insurance
a. Why Crop Insurance
The problem faced by farmers:

5.  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 insurance
b. What is index Insurance

6. 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
Droughts
Floods
Temperature
Y-1 Y0 Y1 Y2 Y3
Revenue
Not insured
Revenue
Insured
Insurance coverage
Level of
Production &
Revenue
Farmers
Stabilized income
 Improved food security
 Secured future production (seed purchase)
 Secured financing options (stable income)
Banks & MFIs
Reduced 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 insurance
C. Positive Value Chain Impact

7. 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 Sahel
a. Overview - Objectives

8. 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 Sahel
b. Example of How it Works

9. Product Design Training
Distribution Awareness raising
III. Assurance Récolte Sahel
C. Activities – Main Activities

10.  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 Sahel
C. Activities - Raising Awareness Examples

11. 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 Sahel
d. Country Overview - Mali

12. 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. Potential
to 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, Ecobank
Burkina 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 Sahel
d. Country Overview – Burkina Faso

13. 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), Caisse
Nationale 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 PlaNet
Guarantee program.
III. Assurance Récolte Sahel
d. Country Overview - Senegal

14. 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 Sahel
d. Country Overview – Côte d’Ivoire

15. Interview of Nimna Diayite, president of maize producers
cooperative (FEPROMAS), Senegal, 2013.
How would you qualify your collaboration with PlaNet Guarantee?
 Our partnership with PlaNet Guarantee since 2012 has been
really positive and we hope to strengthen it in the upcoming
years. We have been for a long time in search of a way to protect
ourselves 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 cooperative
received as payout from PlaNet Guarantee?
 This compensation has been really useful; it allowed us to repay
the credit to the bank and save some money that will serve for
other useful purposes. We hope this initiative will be extended
to farmers that couldn’t benefit from it this year. Before the start
of the ARS project by PlaNet Guarantee there was no existing
initiative dedicated to index crop insurance.
III. Assurance Récolte Sahel
e. Partners - Client Testimony

16. Thank you!
PlaNet Guarantee
111 Boulevard Pereire
75017 Paris France
Anaar Kara
R&D Director
PlaNet Guarantee
akara@planetguarantee.org
…………………………
Mob : +33 (0)6.66.02.89.25