Feasability Study on Weather Indexed Crop Insurance (WICI)

The development and implementation of the WICI scheme will be undertaken in two phases. Phase 1 will result in the determination of feasibility for introduction of WICI on a pilot scale in Cambodia, and include an assessment of the requirements for its design, establishment and operationalization in Phase 2.

The feasibility study will entail, among other things, assessment of

(i) the current status of weather data and monitoring infrastructure and operational capacity; (ii) the availability and accessibility of sound agronomic data to assess crop vulnerability needed to design an index;

(iii) the availability and access to financial data to calculate the level of loss per farmer across the area to be covered by the index;

(iv) the status of the local insurance industry and relevant public sector and private sector institutions in terms of structures, capacities, and experience;

(v) the policy environment that will facilitate adoption of WICI; and

(vi) availability of stakeholders, partners, interested parties and champions. It would also require identification and selection of potential sites and the crops where WICI would be introduced on a pilot scale.

The feasibility study will include a phased implementation plan, identifying various milestones during the course of implementation that would eventually lead to pilot testing of WICI in selected areas in Cambodia in Phase 2. Phase 2 will comprise design of the WICI scheme, upgrading of the required institutional infrastructure and capacity building, identification and selection of potential sites and the crops where WICI would be introduced on a pilot scale. Based on the feasibility study, phase 2 may include procurement of materials and equipment, upgrading of automatic weather stations and establishing links to World Meteorological Organization (WMO) Global Telecommunication System (GTS), capacity building, and technical expertise.