Final Evaluation of the Global Index Insurance Facility for ACP Countries (GIIF Programme)

The overall objective is to reduce the vulnerability of the ACP population to external shocks/natural disasters. The specific objective is to expand the use of index insurance as a risk management tool in ACP countries The Global Index Insurance Facility Programme seeks to introduce a new, more efficient approach (indexed or parametric insurance) for mitigating weather/CAT risks in developing countries. Indexed or parametric insurance is different in several ways to traditional indemnity insurance, particularly with respect to payout/indemnification bases, shows a considerably lower expense element, and introduces processes for settling claims which significantly reduce the moral hazard risks associated with traditional insurance. However, indexed or parametric insurance is subject to significant basis risk. Therefore the development of appropriate indices and benchmarks requires upfront expenditure for establishing data bases, gathering and analyzing data, developing risk models and the capacity in local markets (insurance entities, financial institutions etc.) to intermediate and market such instruments. Two broad types of activities are foreseen under the Programme: capacity building (tasks 1-3) and support of specific risk transfer projects through premium support (task 4): task 1 - Promotion and public awareness on index insurance; task 2 - Commercial capacity building; task 3 - Strengthening of legal, regulatory and supervisory systems related to index insurance in ACP countries, as well as at an umbrella level; task 4 - Support of specific risk transfer projects through premium support The final evaluation performed was carried out with inclusion of impact assessment dimension to provide the relevant external co-operation services of the European Commission, the implementing Agency, the beneficiaries, represented by the ACP Secretariat and the wider public with sufficient information to: (a) make an overall independent assessment about the past performance of the GIIF Programme, paying particularly attention to the impact of the Programme actions in order to achieve its objectives and sustainability of the results; (b) make an in-depth impact assessment on the basis of surveys of the direct and indirect beneficiaries of the GIIF Programme; (c) identify key lessons learnt and propose recommendations for potential future interventions in this field; (d) review the MTE recommendations and provide insight on how and to what extent these recommendations have been implemented. The final evaluation taking into account the impact assessment as stated above was limited to the specific activities of the Programme in ACP countries, in the context of a broader Programme including Asia and Latin America.