. Climate Index Insurance Proposed Innovations: Research Needs

Proceeding of 2013 International Seminar on Climate Change and Food Security ISCCFS 2013 Palembang, South Sumatra -Indonesia, 24-25 October,2013 8 Fig. 4: An example of the application of a crop model and GIS to map vulnerable areas to climate change. The case is for citarum watershed. Source: prepared by Perdinan and Febriyanti 2013

2.5 . Climate Index Insurance

Climate index insurance is proposed considering the failure of the implementation of crop insurance in Indonesia as discussed by Boer 2012. Philosophy of the insurance is payment will be made on the basis of unexpected climate condition regardless of crop lossfailure. This approach will simplify the complexity of crop insurance that requires ‗field‘ checking to evaluate crop losses due to climate extremes. Boer 2012 explains that an index derived based on climatic condition such as rainfall amount during growing season that can cause crop failure i.e., a climate threshold is used to determine whether farmers can claim the 2040 2070 Ir iga te d + F er til iz er Ir iga te d + N o n Fe rti li ze r N on I ri ga te d + Fe rti li ze r N on I ri ga te d + N on F er ti liz er Yield tha NA 1.50 1.50 - 3.00 3.00 - 4.50 4.50 - 6.00 6.00 - 7.50 7.50 - 9.00 9.00 Change 0 - 20 20 - 40 40 - 60 60 - 80 80 - 100 100 Current Proceeding of 2013 International Seminar on Climate Change and Food Security ISCCFS 2013 Palembang, South Sumatra -Indonesia, 24-25 October,2013 9 payment. For example, the amount of rainfall about 75 mm during growing season is used as a threshold for a location, which means farmers can claim the payment when the amount of rainfall during the season is less than 75 mm, regardless of crop failure or losses. Initially, the climate index insurance has been developed in developing countries, i.e., Africa, India, and the Phillipines as summarized by Boer 2012. The major challenge in the insurance system is to determine the climate threshold i.e., index for a location as climatic condition is location specific i.e., development of climate index. Detail policy on payment and claim of the insurance system for Indonesia is also still being investigated. Further research is still needed including how to include the climate index into farming management in Indonesia as an adaptation option. Fig. 5: Illustration of rainfall index and percentage of payment of insurance claim Source: translated from Boer, 2012

2.6. Management of Pest Infestations