Public-Private Partnerships for Agricultural Risk Management - - PowerPoint PPT Presentation

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Public-Private Partnerships for Agricultural Risk Management through Risk Layering: The Case of Ecuador Elizabeth Long Assistant Director, I 4 University of California, Davis I4 Index Insurance Innovation Initiative Technical Committee Meeting

SLIDE 1

Public-Private Partnerships for Agricultural Risk Management through Risk Layering: The Case of Ecuador

I4 Index Insurance Innovation Initiative Technical Committee Meeting Washington, D.C. 13 May 2011 Elizabeth Long

Assistant Director, I4 University of California, Davis

SLIDE 2

Parallel Efforts for Low-Cost Risk Management

Governments are increasingly turning to

index insurance for catastrophic risk management

Private sector index initiatives
Goal to explore gains of unifying efforts

and identify specific division of labor between private and public sector; challenges, etc.

SLIDE 3

Structure of Presentation

Characteristics of coastal Ecuador
Data for Ecuador
Define Risk Layers
Contract design
Challenges moving forward

SLIDE 4

Coastal Ecuador

(-will insert map of Ecuador on right and picture of irrigated fields)

Palenque is canton in Los Ríos
Lowland and tropical
Two rainy seasons
Irrigated rice is primary crop for

smallholders

What is average size of smallholder in ha? Any poverty

indicators to use for comparison? Wealthier than highlands? Poorer? Compared to region?

SLIDE 5

Data for Ecuador

ESPAC

– government annual yield survey – 2000-2010 – Sample structure: randomly select segmentos (agricultural census tract 200-500 ha) and interview all farmers

Same segmentos revisited every year
Select segmentos to be representative of province

– Unidad Primaria de Muestreo (UPM) next higher level, contract “written” at UPM level

SLIDE 6

Risk Layers

Risk Retention Layer Commercial Risk Layer Catastrophic Risk Layer

SLIDE 7

Risk Transfer Contract

Catastrophic Risk Layer Commercial Risk Layer Risk Retention Layer

SLIDE 8

Risk Transfer Contract: Catastrophic Risk Layer

SLIDE 9

Risk Transfer Contract: Commercial Risk Layer

SLIDE 10

Risk Transfer Contract: Unified

A C B

SLIDE 11

Institutional Challenges

Information to construct indices
Delivery mechanisms for government

– In Peru people didn’t know they were insured – Identification of insured population (to whom do you pay) – How do you make them aware they are insured (and thus change behavior) – How do you delivery indemnities to insured population?

Coordination between government and

private sector… government or private

SLIDE 12

Questions?