The recent rise of commodity prices results in an imbalance of food supply and demand on a global scale and brings the need for securing food supply. Investments in new farming technologies, risk management and insurance tools contribute to tackle this issue. This way, a certain number of Emerging Countries are developing Micro-Insurance and locally-based Insurance Solutions, to protect themselves from systemic risks. This newsletter written by the Agriculture Unit highlights the stakes related to these solutions notably in terms of market improvement and structure for agricultural risk sharing and risk transfer involving both government and private participants. It also includes the role of reinsurance in this evolution, pointing out its advantages.
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