Indonesia: Analysis of current rice insurance scheme (AUTP) and assess the feasibility for area-based yield (AYI) insurance program for rice in Indonesia
AgroInsurance experts have successfully conducted scoping study in Indonesia and suggested modifications to the existed rice insurance scheme (AUTP), as well as recommended on viable options for a feasible AYI product design. Project: Analysis of current rice insurance scheme (AUTP) and assess the feasibility for area-based yield (AYI) insurance program for rice in Indonesia Country: Indonesia Duration: 03/2019 – 12/2019 Client: JICA Objectives: The overall goal of the scoping study was to assess the current state of AUTP program and suggest modifications based on the actuarilly-sound risk pricing and crop exposure for smallholders and SMEs. Suggest the new AYI insurance product in order to reduce the vulnerability of subsistent farmers, farm groups, SMEs to extreme weather events. Services provided: Assess the opportunities for climate risk insurance (in agriculture) for Indonesia Advise on possible AYI and AUTP rice insurance using the available parametric (satellite) and ground data for product development and enhancement process Research on the opportunities to link agricultural loans to insurance coverage for smallholder farmers and agricultural SMEs Analyze ongoing RIICE project activities and satellite mapping data available for rice yield estimations; consider applicability of the data for development insurance products Audit of the current rice insurance scheme (AUTP). Suggest on adjustments to the program structure, ca-pacity needs, marketing and promotion of the rice insurance in Indonesia Recommend on viable options for a feasible AYI product design and setup: set up new program and/or support existing agricultural insurance schemes for rice in Indonesia Application of remote sensing instruments for agricultural insurance Development a set of technical memos on: (i) Agricultural insurance subsidies; (ii) Digital griculture; (iii) In-ternational Private-Public Partnership (PPP) examples in agricultural insurance; (iv) Rice crop risk profile; (v) Indonesia farmer’s landscape profile; (vi) International practice in multi-peril crop insurance (MPCI); (vii) Specifics of Area-based Yield Index (AYI) programs.