Data science unlocks $20 million agro insurance in East Africa
from MARIA MACHARIA in Nairobi, Kenya
NAIROBI – ONE of the world’s leading insurers and asset managers is eyeing the agriculture insurance sector in Kenya and the East African region.
Allianz Africa estimates that the value of the agriculture insurance segment to stand at US$10 million but believe it holds the potential to grow to $30 million.
They aim at partnering with aggregators such as banks, cooperatives, agro-dealers, and commodity associations to deploy the solution.
Allianz entered the East African market last year after signing an agreement with Jubilee Insurance to establish a strategic partnership in the five African countries where Jubilee Insurance currently operates.
The partnership covers the general insurance business in Kenya, Tanzania and Uganda as well as the short-term insurance segment in Burundi and Mauritius.
JHL retains its ownership of its life and pensions operations and its medical insurance business in Kenya, Uganda and Tanzania.
Lovemore Forichi, senior underwriter of Aagriculture at Allianz, said according to their estimates, agriculture insurance premium globally is $32 billion.
East Africa contributes about $18 million of which Kenya is about $10 million.
Governments and the private sector in East Africa are working together to increase agriculture insurance penetration in the region,”. Less than 5% of the Kenya farming community is insured,” Forichi said.
The Kenyan government of President Uhuru Kenyatta and private sector are also actively contributing to the insurance penetration through premium subsidies for crop and livestock farmers.
Less than 5 percent of the Kenya farming community are insured. – CAJ News
