Insurance solutions for managing the food crisis

Food prices for crops like wheat or corn rose sharply in recent years, mainly as a result of the growing imbalance between supply and demand for agricultural products. While the prices have fallen from their peaks, the issue of food security and the cost of food will remain on the international agenda. The issue affects not only consumers but also the farming communities and rural economies where the crops are produced.

Because agricultural production is vulnerable to the impact of natural catastrophes, it becomes even more important to reduce the sector's financial volatility and to rethink the way that disasters are financed. Public-private partnerships in agricultural insurance can help to reduce the gap between economic losses and insured losses, for instance, making local governments and rural communities more resilient to disasters. This publication shows what can be done to secure funding for disasters ahead of an event.

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