On 14 November 2020, the German decentralized insurance startup Etherisc announced it’s working on a blockchain parametric crop insurance platform for smallholder farmers in Kenya. The objective is for weather events to trigger insurance payouts automatically.
According to a study conducted by the Global Innovation Lab for Climate Finance and Etherisc, its technology reduces the costs required for policy issuance by up to 41%. This, in turn, reduces the premium for farmers by up to 30%.
The study also found that only 20% of smallholder farmers in developing countries have access to agricultural insurance. This statistic plummets to 3% in sub-Saharan Africa. With climate change resulting in extreme weather events such as floods or droughts, crops are becoming increasingly vulnerable to destruction. To tackle the effects of climate change in Africa, Etherisc and Acre Africa, an insurance service provider for agriculture in East Africa, have sought sustainable solutions to protect farmers. The project aims to provide 250,000 East African farmers with insurance coverage.
Article continues …
Want the full story? Pro subscribers get complete articles, exclusive industry analysis, and early access to legislative updates that keep you ahead of the competition. Join the professionals who are choosing deeper insights over surface level news.
