An accumulation of evidence in recent years has shown that index insurance can be a key tool for the future of food security and resilience. This development has governments and donors rushing to invest in subsidies to help speed uptake, but what kinds of investments should be priorities?
Index insurance for agriculture has shown remarkable potential for smallholder farmers at risk of climate-related disasters across the developing world. While conventional insurance requires losses to be verified, index insurance avoids these high costs by basing payouts on an averaged index of factors, such as vegetation growth or rainfall, that can be measured remotely.
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