Global Index Insurance Forum 2017 | The World Bank | 13 September 2017 | Paris, France

An innovative program which is part of the World Bank Group’s Finance & Markets Global Practice

The Global Index Insurance Facility (GIIF) is a multi-donor trust fund supporting the development and growth of local markets for weather and disaster index insurance in developing countries, primarily Sub-Saharan Africa, Latin America and the Caribbean and Asia-Pacific. GIIF’s regional partners have facilitated more than 1.5 million contracts, covering over 6 million individuals, with $148 million in sums insured, reaching over one million with information and access to index insurance. GIIF’s objectives are to provide access to financing for the vulnerable; to strengthen the financial resilience of the poor against the impact of climate change and natural disasters, and to sustain food production for local communities and larger markets.

Index insurance is a relatively new but innovative approach to insurance provision that pays out benefits on the basis of a pre-determined index (e.g. rainfall level, seismic activity, livestock mortality rates) for loss of assets and investments, primarily working capital, resulting from weather and catastrophic events, without requiring the traditional services of insurance claims assessors. It also allows for the claims settlement process to be quicker and more objective.