1. Current State of the Industry: Challenges Facing Agriculture Insurance in Tanzania July 19, 2018 | 8:30 am-6:00 pm Ramada Encore Hotel | Dar es Salaam

2. 78% of SHF produce more than one crop for consumption
Source CGAP 2016

3. Most keep livestock and are older
Source CGAP 2016

4. 92% of rural households experienced a “shock”
The main shock is in medical emergencies. Crop failure follows at half the rate.
Source CGAP 2016

5. 79% of hazards in upstream agriculture are related to weather
Source CGAP 2016

6. The hazards are frequent enough
Source CGAP 2016

7. Borrowing is most common coping method for emergencies
The use of borrowing is driven by medical emergencies
Finscope 2017

8. For agriculture related risks several coping strategies are used
Source CGAP 2016

9. Affordability is main barrier to insurance
Finscope 2017

10. Challenges to development of agriculture insurance
Underwriting
Distribution
Value
Limited extension services
Lack of data
General underinvestment in SSF
Reaching SSF at cost and scale
Addressability (awareness, literacy)
Market risks (price, off take)
Post harvest losses
Limited commercialization of SSF

11. Farmers are willing to invest to cope

12. Opportunity to leverage plans and to drive investments
ASDP II calls for TZS 13 trillion in investments in the agriculture sector. It is important for the insurance sector to investigate opportunities in agriculture insurance from the large investment requirements of the sector. TADB and SAGCOT CTF can inject additional $150 million into agriculture in Tanzania. The additional capital can create opportunities for investment.

13. Fit4Ag platform as a resource for discovering opportunities
The platform is facilitated by FSDT, SAGCOT, and AMDT with collaboration with key agriculture sector partners. The platform facilitates knowledge on value chain investment opportunities over a long term period.

14. Tanzania Mercantile Exchange as a potential game changer
This exchange offers a platform for the sale of commodities. It will be able to facilitate hedging instruments to manage market risks and give more confidence for investment and insurance.

15. New rural partnerships and products in insurance:
NHIF very recently launched a health insurance solution that is offered through agriculture marketing cooperative societies (AMCOS). The solution can potentially reach millions of rural households and help to increase awareness of insurance. The partnership will test the viability of AMCOS as distributors.

16. End