The project’s overarching goal is to increase the resilience of the Central Asian agricultural sector to climate risks, especially droughts, through innovations in agricultural insurance markets. About 80 international participants attended the workshop.
The main focus of the meeting was to present and discuss KlimALEZ project findings in terms of novel data tools and applications on agricultural insurance in the Central Asia region. The opportunities and challenges of these results were discussed by panelists from business, research, and NGOs, including representatives of FAO Central Asia, Kokand University, and the insurance companies Jubilee Insurance Kyrgyzstan, Mongolian Re, Hannover Re, Agroinsurance Association of Kazakhstan, and Gross Insurance.
Another focal point underlined the individual preconditions for the implementation of index insurance in terms of legislation, institutions and state support in the different Central Asian countries. It was noted that successful implementation of agricultural index insurance not only requires a legal basis and financial support in the form of subsidies. It is also necessary to raise farmers' awareness of the benefits of agricultural index insurance, to understand the mechanisms, and to implement substantial trust-building measures.
In addition, the insurance process was also examined in more detail: The digitalization of the insurance process starts with contracting via online platforms. However, the process should expand to include automated monitoring of data on a daily basis by farmers, damage assessment based on remote sensing data, and online settlement and payouts. In each of these steps, digitization makes the insurance process fast, uncomplicated, transparent and less prone to fraud.
In conclusion, the discussants emphasized that the promotion of needs-based agricultural index insurance by governmental and international organizations in close alliance with insurance companies can further encourage the developemt of index insurance in Central Asian countries.
