East Africa: Mobile crop insurance model spreading from Kenya to other countries

| April 18, 2016

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A mobile insurance scheme that supports small-scale farmers in Kenya is spreading to other parts of East Africa.

The insurance scheme uses mobile phones to keep costs low. Farmers pay a five per cent surcharge on purchases of inputs such as fertilizer and seeds, and the surcharge is registered with the insurance company. The company then communicates with the farmer via text message, and, in the event of extreme weather, farmers receive payment in the form of mobile money. There are no claim forms, because the insurance company uses data from local weather stations to identify when extreme weather events have occurred.

UAP Insurance will soon be launching the Kenyan model in the Democratic Republic of Congo, Rwanda, Tanzania, and Uganda.

In Ethiopia, mobile phones are less common in rural areas, but farmers will still have access to crop insurance. An insurance scheme was announced in March that will cover the cost of inputs such as seeds, fertilizer, and pesticides if crops fail because of the weather.

To read the full article, go to: http://www.bbc.com/news/world-africa-35942844

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