Science to Business and Policy: KlimALEZ supports the launch of satellite-based index insurance for Mongolian wheat producers
18 June 2020
In the scope of the project KlimALEZ, IAMO researchers have successfully supported the launch of Mongolia’s first index insurance product for wheat growers. Since 2017, the KlimALEZ team has been advising the Ministry of Agriculture and the insurance company Mongolian Re in cooperation with German-Mongolian Cooperation Project for Sustainable Agriculture (DMKNL). With this policy advice, the team was responding to the interest of the Mongolian Ministry of Agriculture to repeat the good example of the country’s Index Based Insurance for Livestock (IBIL), which is functioning successfully since 2006.
The insurance product is based on a vegetation index that was developed by IAMO scientists, while pricing and distribution was conducted by local insurance companies under the lead of Mongolian Re. (video link of the report). In this year, 385 farmers and 22,338 ha of land have been insured. In addition to its role as a settlement agent, IAMO will provide a digital platform that informs farmers and insurance companies about historical and current vegetation development. Ihtiyor Bobojonov notes: “Mongolia is already the forerunner in implementing index-based insurance for livestock production in the region. The latest efforts show how existing mechanisms can be successfully upgraded with digital tools”.