Drought insurance ‘failed’:

Taking out insurance to protect against climate risks is the “wrong model” for improving countries’ ability to cope and may even be worsening inequality and vulnerability, a leading development charity said on Wednesday.

A policy taken out by Malawi cost the drought-ridden southern African country $5 million but failed to deliver timely assistance to more than 6.5 million people affected in 2016 and shows that insurance is “poor value for money”, ActionAid said.

Insurance is viewed by some as a solution for developing countries to cushion farmers against extreme weather that can worsen poverty and threatens to roll back development gains. (RTRS)