Akuto: Insurance, Key in Climate Change Adaptation

Financial tools are now also being tapped to help people in developing countries cope with climate change. A climate-based insurance tool, Ngodoo Akuto wrote on Daily Trust, will help poor farmers and other vulnerable groups cope with the risks posed by global warming on a daily basis. Index insurance contracts, in particular, lowers transaction costs since an insurance company need not visit the policy holder to establish premiums or evaluate damages, Akuto added. If the rainfall recorded falls below the agreed threshold, the insurance will pay out to the policy-holding farmers.

About the author

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    Ma. Rizza Leonzon

    As a former staff writer, Rizza focused mainly on business coverage, including key donors such as the Asian Development Bank and AusAID.