In partnership with the insurtech Sprout and the diversified financial services firm Britam, serving as the local underwriter, the new parametric product is designed to protect Kenyan coffee growers from any financial losses incurred by drought.
The parametric product will cover farmers and ensure rapid payouts in the event of specific weather events, providing them with immediate financial support to minimise the risks of crop failures. The product is also designed to help farmers become more resilient by incorporating real-time advisory services.
Sprout leverages satellite data and machine learning to analyse and assess historical weather patterns, while Liberty Mutual Re has been supporting these parametric insurance solutions since their inception, helping to shape the structure of coverage and capacity allocation.
Jean-Christophe Garaix, Head of Agriculture and Parametrics at Liberty Mutual Re, commented, “This launch is testament to our commitment to providing innovative insurance solutions that empower local communities in emerging markets to be more climate resilient. Partnering with Sprout allows us to combine our reinsurance expertise with their deep understanding of agricultural needs, resulting in a product that offers tangible benefits to Kenyan farmers and provides a stabilising effect for the local economy.”
Ashley King-Bischof, CEO of Sprout, added, “This coffee product is a catalyst to unlock production potential and climate financing options for smallholder farmers in Kenya. Partnering with LM Re allows us to deliver a robust product and support farmers when they need it most.”
Tom Gitogo, Managing Director and CEO of Britam Group, also said, “As part of our sustainability strategy, we aim to champion innovative microinsurance solutions that not only safeguard vulnerable populations, such as small-scale farmers, from climate risks but also deepen financial inclusion among the low-income population. These emerging risks are underserved in the market, and to address this gap, Britam partners with local and global organisations to develop innovative solutions.”
Source: Artemis
