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D-index-insurance Dictionary

Index insurance

Insurance that pays on a measured trigger such as rainfall rather than on assessed farm loss

All termsIntroduced in Module 2Open the Toolkit
An open dictionary on a farm office desk
Plain meaning
Insurance that pays on a measured trigger such as rainfall rather than on assessed farm loss
How to use it
Consider index insurance where drought is the main risk and claims assessment on the farm is slow or expensive. Check the trigger and the weather station it uses.
South African benchmark
Weather-index products are offered by South African agricultural insurers alongside multi-peril cover.
Country notes
Index-insurance products have been piloted in Zambia and Zimbabwe, often bundled with inputs.
Go and read
C2 Lesson 2.4
Calculate it
T-C-07 Risk Register
Library sources
LIB-A021, LIB-A132
See also
Dryland farming, Stress test
Twelve-month cash flow showing money out before money in and the lowest cash pointTwelve months of cash: money out first, money in laterJFMAMJJASONDRed dot: the lowest cash point, the working capital you must fundMoney in (sales)Money out (inputs, labour, loan)Running cash balance
From Module 2, Money for the Farm, where this term is introduced.

Introduced in C2 Money for the Farm.