On November 28, SANASA Insurance Company LTD (SICL) proudly inaugurated its first weather station which was set up in Kegalle at the SANASA Campus. Made possible through a contribution from Desjardins Financial Security (DFS), the installation of this station marked the start of a project to extend the network of weather stations already in place in order to support the index-based crop insurance program developed in partnership with DID since 2009 for rice growers.
This initiative is being carried out under the EFECS project implemented by DID and financed by Global Affairs Canada. Focused on developing value chains in support of local entrepreneurship, the project is being conducted with SANASA, the largest cooperative group in Sri Lanka. Through the assistance provided under the project, SANASA intends to enhance its integrated service offer aimed at entrepreneurs in targeted value chains to allow for sustainable growth in their operations and increased financial security. Women entrepreneurs are at the core of this initiative. The improved insurance products offered to farmers will lead to better management of related risks and as a result encourage innovation among the entrepreneurs, most of whom are women.
The contribution from DFS to extending the weather station network involves installing 35 new stations in targeted regions to enable SICL to supplement its insurance product for rice growers and then subsequently develop similar products for other crops such as pepper and cinnamon.
The only financial institution in Sri Lanka to offer index-based crop insurance to rice and tea growers, SICL recently welcomed a study mission from the Asia and Oceania Association (AOA), a member organization of the International Cooperative and Mutual Insurance Federation (ICMIF). The official inauguration of the weather station was held during the study mission.
Isabelle Ouellet, EFECS Project Director in Sri Lanka and Samadanie Kiriwandeniya, SANASA International Managing Director described the EFECS project to the visitors and stressed the importance of integrating risk mitigation measures into this financial product to support the value chains. This provided an excellent opportunity to highlight the innovative character of the project and the longstanding partnership between SANASA and DID.