Key contributors to this low uptake as per the article and also from CSJ’s own assessments are a lack of awareness by the farmers and other players such agricultural officers and agroinput dealers, pricing the insurance products in a way that is not affordable for smallholder farmers, improper handling of claims in efficient and fair way especially in remote rural areas, heavy subsidy by other players such as non-governmental organisations that distort the natural uptake by the farmers, as well as a limited understanding of the benefits by the farmers.

CSJ’s recent assessment and discussion with the Agro Insurance Consortium registered these challenges and seeks to dig deep and explore ways to close these gaps and increase uptake of crop insurance.

[1] Insurance Industry Market Report 22. [2] https://www.newvision.co.ug/category/agriculture/why-agricultural-insurance-uptake-in-uganda-i-NV_169286

Objective of the assignment

The objective of this assignment is to understand the current constraints including prevailing models being used by the different insurance companies, explore additional limitations, and determine whether there are opportunities for CSJ to develop a new business model for insurance for SHFs, including women, refugees and hosts. Scope of work

To understand the constraints to the current insurance models being used to reach SHFs, including women and refugees, as well as the limitations to uptake, CSJ will contract a consultant that can undertake an analysis of the following:

Undertake a desktop review of existing studies that have been done on the types of insurance products being offered to smallholder farmers with a focus on geographies, as well as on CJS target groups, and understand the constraints for a lack of adoption of insurance for these target groups.
Develop a root cause analysis and identify the binding constraints on why SHFs are not adopting insurance, focusing also on women, refugees and hosts. This may include an analysis of the following:

Premium calculations and smallholder farmer affordability, and the cost-benefit analysis.
Claim settlement procedures and level of satisfaction of smallholder farmers who have had claims.
Ease of access to insurance service points especially for those in rural communities and refugee settlements
Level of awareness about insurance products and services points closer to small holder farmers.
Determine whether there is a business case for insurance especially for SHFs, refugees, women, and hosts.
Determine the conditions that must be present for insurance companies to successfully sell agricultural insurance policies and conditions under which smallholder farmers will adopt agricultural insurance , including considerations for women, refugees and hosts , and any variations across the different sub regions in NU.
Identify the entry points for CSJ to intervene on improving the uptake of insurance for CSJ target groups.
Note: We envision this TOR will focus on interviewing key stakeholders in the ag-insurance , smallholder farmers who have taken up insurance policies and those who have not.

Deliverables

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A draft report, no longer than 20 pages. Annexes can be in addition to this page count.
A PowerPoint presentation summarising the draft report.
A final report, no longer than 20 pages. Final PowerPoint presentation.
Expertise and experience

A minimum of 8 years' experience in agricultural insurance or related fields, with a demonstrated focus on smallholder farmers.
Comprehensive knowledge of the insurance sector within the targeted geographical regions, including an acute understanding of smallholder farmers' specific needs and challenges, as well as insights into barriers that affect smallholder farmers' uptake of insurance services, including socioeconomic, cultural, and logistical factors.
Proven experience in conducting comprehensive desk reviews and root cause analyses within the agricultural sector, specifically focusing on insurance adoption challenges
Strong analytical skills to interpret complex data and identify trends.
Familiarity with insurance mechanisms and risk management strategies in the agricultural insurance context.
Proven ability to conduct root cause analysis and propose practical solutions to overcome barriers hindering agricultural insurance uptake.
Advanced skills in quantitative and qualitative analysis, with a history of performing cost-benefit analyses of products and services.
An academic background with at least a master’s degree in a relevant field such as Economics, Finance, Business Administration, or Agricultural Sciences.
Strong professional network within the insurance industry and related agricultural and rural development sectors.