In order to reduce premium for farmers in Africa, the World Bank Group’s Global Index Insurance Facility (GIIF) and African Reinsurance Corporation (Africa Re) have entered into agreement to carry out a risk-sharing facility and encourage companies to create affordable insurance products.
The World Bank Vice President for Africa, Makhtar Diop, explained that agriculture provides up to 60 per cent of all jobs on the continent, but African farmers need greater access to insurance mechanisms to develop resilience to external shocks and protect their livelihoods.
According to him, the project is expected to serve as a model to further incentivize other local insurers and regional reinsurers to enter into similar risk-sharing agreements.
He said: “This will ensure the continuation and expansion of index insurance as a risk management tool that will enable smallholder farmers to build resilience against the impact of climate change.”
This strategy fails into the model Zenvus zInsure has developed which is using data and analytics to deepen availability of farm insurance in African markets.
zInsure is an agro-insurance marketplace where Zenvus farmers and insurance companies along with brokers and agents come together. Using data from Zenvus products, a farmer puts a request that he/she wants to insure the farm providing pertinent data about the farm. Once the farmer publishes it in the portal, the Zenvus team will validate the claims using independent Zenvus data. Afterwards, the request is published in the portal for insurers to evaluate the opportunities. The farmer and the insurers complete all monetary transactions outside Zenvus including premium payment.
We are hoping to deploy zInsure to support what World Bank and Africa Re are doing in Africa. The World Bank – Africa Re partnership will surely benefit from zInsure technology, and we will be more than happy to work with them.