SANSASA began in 1991 as a micro-financing organization in Sri Lanka, benefitting 15% of the total population through its 8,000 societies. The organization thinks about its clients, farmers, and thinks about what are the new, innovative ways to provide agricultural insurance so that many people can benefit from the products offered at SANSASA. In 2009 with the cooperative efforts of ILO, index insurance was introduced on the Sri Lankan market, followed by negotiations with the World Bank to introduce weather index insurance. Sri Lanka relies greatly on agriculture, as it represents 10% of GDP and 16% of the population as a profession; thus mitigating risk is imperative. Educating clientele about what types of products are available, collecting data to price products affordably for clients, and understanding how the Sri Lankan agricultural sector operates culturally are challenges for the insurance industry looking to benefit citizens in Sri Lanka going forward.
In the past few years, the question of product has been the focus for the industry, but also distribution becomes the overlapping and future challenge for the insurance industry going forward. Agricultural insurance has its value in helping provide clients access to seeds and fertilizers so that higher yields can be fostered over time. The mobile technology revolution which is taking place in Africa is a great opportunity to understand economic and financial cash flows so that appropriate credit insurance can be made available to those who need it most. The customers are crucial in determining the insurance they seek to have; thus insurance providers over time need to continue listening to customers and providing ways in which risk can be mitigated for all possible inhibitors to growth in the agricultural industry. For those who say information is unavailable, organizations such as PULA Advisors sees this as an opportunity to continue providing to their customer base the best insurance products possible.
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