IFC, SANASA Insurance pilot Insurance
IFC, a member of the World Bank Group, is working with
micro-insurance company SANASA Insurance to develop flexible,
affordable, weather-based agricultural insurance products in Sri Lanka
to minimize the impact of crop losses due to floods or droughts.
IFC is helping SANASA Insurance expand access to insurance for up to
15,000 small farmers by offering protection against weather-related
risks and natural disasters for their food crops. The project will also
raise awareness among 50,000 farmers on the availability and benefits of
these index-based insurance products.
“IFC is an invaluable partner in our commitment to empower the Sri
Lankan farmer through flexible and affordable insurance to help mitigate
weather-related risks,” said Dr P. A. Kiriwandeniya, founder of the
Index-based insurance products pay out benefits calculated using a
pre-assigned value for losses arising from weather or catastrophic
events. Such products eliminate the need for insurance companies to
individually verify claims, reducing transaction costs and making it
easier and faster for products and payouts to be offered to rural
“These insurance products, designed in collaboration with SANASA,
will improve the livelihoods of small farmers in Sri Lanka by reducing
the impact of adverse weather conditions,” said Adam Sack, IFC Country
Manager for Sri Lanka and Maldives.
IFC established its Global Index Insurance Facility in 2009 to assist
the development of index-based insurance for natural disasters and
weather risks in developing countries, particularly in agricultural
communities where insurance is rarely available. The GIIF Global Trust
Fund is also supported by Japan’s Ministry of Finance, with an initial
grant of $2 million, and by the Dutch Ministry of Foreign Affairs, which
provided $500,000 to establish the facility.
Sri Lanka is a priority country for IFC. IFC’s committed portfolio of
$200 million in Sri Lanka covers projects across a range of sectors.