Allianz : New Data Science Can Unlock U.S.$20 Million Agriculture Insurance Business in East Africa | MarketScreener

Allianz Africa is eyeing the agriculture insurance coverage sector in Kenya and the East African area which they are saying is ready to develop by 200 %.

Allianz specialists estimate that the worth of the agriculture insurance coverage phase to face at $10 million however say it holds the potential to develop to $30 million. They goal at partnering with aggregators resembling banks, cooperatives, agro-dealers, and commodity Associations to deploy the answer, stated Lovemore Forichi, Senior Underwriter of Agriculture at Allianz Re

“According to our estimates, Agriculture Insurance Premium globally is USD 32 billion. East Africa contributes about USD18 million of which Kenya is about USD10 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,” stated Lovemore

Allianz, one of many world’s main insurers and asset managers, entered the East African market final yr after signing an settlement with Jubilee Insurance to ascertain a strategic partnership within the 5 African nations the place Jubilee Insurance at present operates.

The partnership covers the final insurance coverage enterprise (also referred to as the property & casualty insurance coverage phase) in Kenya, Tanzania and Uganda in addition to the short-term insurance coverage phase in Burundi and Mauritius. JHL retains its possession of its Life and Pensions operations and its Medical insurance coverage enterprise in Kenya, Uganda and Tanzania.

Lovermore says that Allianz goals at unlocking the potential utilizing parametrics which is a non-traditional insurance coverage product that provides pre-specified payouts primarily based upon set off occasions resembling wind velocity and rainfall measurements.

“Operationally, parametric solutions are less cumbersome as the insurance company does not need to visit the farm and occupy the farmer’s time. Monitoring of the index can be done remotely through satellite imagery and data. The farmer can also have access to the data and they can closely monitor the development of the index throughout the growing season on their mobile phone or tablet. This also makes it very transparent, traceable, efficient, and paperless,” stated the official.

Through parametrics, farmers can select which parameter is of concern to them, so far as affecting their crop yield is anxious. The most typical parameter is rainfall. Lack of rainfall through the cropping season (drought) in addition to an excessive amount of rainfall (extreme rainfall) have a huge effect on the farmers’ yield and subsequently the income.

So the farmer will select to insure in opposition to drought and/or extreme rainfall to hedge their losses. When the insurance coverage firm makes use of index insurance coverage options resembling Rainfall Index, Evapotranspiration Index, Soil Moisture Index, and Area Yield Index, these are categorised as parametric options.

Over the years, extra insurance coverage corporations are venturing into the agricultural house as farmers are more and more understanding the worth of insurance coverage as they be taught from different folks’s experiences.

The Kenyan authorities and personal sector are additionally actively contributing to the insurance coverage penetration by premium subsidies for each crop and livestock farmers as solely lower than 5% of the Kenya farming neighborhood are insured.

Copyright Capital FM. Distributed by AllAfrica Global Media (, supply News Service English


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