Page - 334 - in Loss and Damage from Climate Change - Concepts, Methods and Policy Options

334 L.Schäfer et al. services that are valuable to the client and the active reductionof basis risk,which remains a challenge for index products,were found as effectivemeans to increase clientvalue.SANASAinSriLankaisagoodexampleforaddingclientvaluethrough bundlingwithadditionalservices.Theuniquepartoftheirindex-basedcropinsurance productisthatitisbundledwithothercoverslikeaccidentaldeathandhospitalisation whichcatered tovariousneedsof the farmers andofferedagoodcoverage forboth productionand livelihood risks (PrashadandHerath2015). Affordability Mostinsurance-relatedapproachestargetingpoorandvulnerablepeopleorcountries havenot been started andperformedwithout some formoffinancial support, often in the formofpremiumsupport (Vivideconomicset al. 2016).Affording risk-based premiumsremainsamajorchallenge for this targetgroup,andmeasures to increase the affordability of products are paramount to the success of insurance schemes. Finding solutions for this challenge is the precondition for establishing solidarity and human-rights-oriented insurance schemes that respond to concerns of equity (SchäferandWaters2016).Whenapplied,premiumsupportshouldalwaysbesmart in away that it’s reliable, flexible and long term, that distorts incentives as little as possible, and thatmakes theclient awareof the true riskcosts. Accessibility Efficientandcost-effectivedeliverychannels that requireminimuminputbutensure awidespread reach are key for reaching a large client base and scale (Schäfer and Waters2016).Onewaytoachievethiscanbebybuildingonnaturalaggregators,such as associations, cooperatives,mutuals, federated self-help groups, and savings and credit groups,which have established successful and trusted deliverymechanisms and align the insurance schemewith the local context. Investing in tech-leveraged secureclient identificationandtargetingaswellaspaymentsystemstoreducefraud and improve the timeliness of payouts were identified as success factors by the case study analysis.Moreover, it proved successful to utilise social protectionpro- grammes,whereappropriate, toimplementlarge-scaledevelopmentofinsurancefor thepoorandvulnerable. Participation,TransparencyandAccountability Target groupownership and trust are essential for the effective use of insurance as a riskmanagement tool. It is crucial to include the insured andbeneficiaries in the designand implementationof insurancesolutionsanddisaster risk reductionactivi- ties toensureproducts trulywork.Participatoryapproaches toproductdevelopment cancreatetrust,helpwithcapacitybuildingandmakesurethattheinsuranceactually meetstherealneedsofpeopleatrisk,thuscreatingclientvalue.Thecasestudyresults showed that it is important toactively support andbuildpartnerships, networksand communicationchannels thatallowfor inclusiveandmeaningful involvementof the poor and vulnerable (Schäfer andWaters 2016). Organisations and structures that havedeeprootswithin the localcontextare favourablepartners.Schemesmoreover need to ensure that the design and implementation processes are transparent and accountable.Aneffectivemonitoringandevaluation framework thatmeasuresout-