Lemonade Crypto Climate Coalition protects over 7,000 Kenyan farmers


The Lemonade Crypto Climate Coalition, a blockchain based parametric crop protection for subsistence farmers, has completed its initial launch.

The Lemonade Foundation, the nonprofit founded by Lemonade, announced its plans to offer climate insurance to protect subsistence farmers via its Crypto Climate Coalition last year.

The Lemonade Crypto Climate Coalition provided protection for farmers’ livelihoods impacted by weather events during the recent growing season in Kenya. At the end of the season, those eligible were paid out instantly via smart blockchain contracts.

According to Lemonade, the use of smart contracts enabled fast cash transfers without the need for filing claims, or for human adjusters, lowering costs, and avoiding the often months-long timeline associated with the process.

Alongside additional founding partners, Avalanche, Chainlink, DAOstack, Etherisc, Hannover Re, and Pula, the Lemonade Crypto Climate Coalition offered its non-profit, instantaneous crop protection program to smallholder farmers in the region at the commencement of the planting season.

As a result, nearly 7,000 farmers signed up to protect their crops during the most recent short rains season from October 2022 to January 2023. Most of these included green grams and sorghum—principal staple foods grown throughout the region, with green grams representing a main food source for a majority of the population. At the end of the season cash transfers were automatically triggered based on area yield data and sent directly to farmers.

Shai Wininger, director at the Lemonade Foundation, said, “Working alongside our partners and seeing the very real impact decentralized technologies can have on smallholder farmers in Kenya is incredibly encouraging.

“We’ve built highly-accurate data models that trigger autonomous smart contracts, not only bringing the cost of handling a claim down to almost zero, but also providing the best experience for our customers. We’re excited to expand beyond this initial stage and continue scaling to give even more farmers access to critical financial protection when they need it most.”

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