Assessment of Risk Insurance Initiatives Contributes to Identifying Enabling Factors for Adaptation and Disaster Risk Reduction Benefits

The penetration of risk insurance in the developing Asia-Pacific is poor compared to many developed countries in the region due to several barriers that this sector is facing. Keeping this in view, this project assessed the benefits accrued through community-level risk insurance experiences in the Asia-Pacific region, evaluated barriers limiting its penetration and identified interventions for greater risk insurance penetration leading to climate change adaptation and disaster risk reduction.

The study explored the barriers to risk insurance in Australia, India, Japan, and the Philippines, and conducted a cost-benefit analysis for risk insurance in these countries. The results suggest that in the case where catastrophic events occurred annually, although rice production without crop insurance is still financially profitable, availing of crop insurance will increase the financial profitability of rice production since farmers with insurance have higher net present value and benefit-risk ratio compared with farmers without insurance.

The project sensitized policymakers to address the barriers to the promotion of risk insurance through presentations in policy-relevant forums organized under the project and various other relevant events.

About This Project

This project was funded by APN grants ARCP2013-18NMY-Prabhakar and ARCP2014-08CMY-Prabhakar. For more information about the project, including its outputs, please visit http://www.apn-gcr.org/resources/items/show/1887.