Lexasure Financial Group Limited, a key player in reinsurance, insurance and InsurTech solutions across South and Southeast Asia, and AgriG8, an Agri-FinTech platform, have publicised a memorandum of understanding, envisaging a strategic partnership.
This collaboration is proposed with a view to revamping the financial ecosystem accessible to Indonesian rice farmers, their suppliers, and corresponding financial institutions.
The proposed partnership is anchored in the aspiration to make the agri-finance sector more attractive and beneficial for smallholder farmers in Indonesia. The ambition is to capitalise on AgriG8’s technology, fortified by Lexasure’s cutting-edge insurance solutions and an extensive network of financial partners, including banks, microfinance bodies, and various lenders. Together, they plan to offer a holistic suite of services, from loans and crop insurance to farm advisory services, all accessible via a user-friendly mobile application.
Further details of this partnership include crop monitoring, yield prediction services and the introduction of Lexasure’s Flourish mobile app, a technology dedicated to helping Southeast Asian farmers stabilise their income. This app will enable approved users to manage their insurance policies efficiently, offering easy enrolment and robust support.
David Chen, chief executive officer of AgriG8, acknowledged the potential of this alliance. He said, “AgriG8’s unique ability to convert agricultural data into economic opportunities and climate-focused transformation in rural farming communities has fueled our company’s growth since our inception. Collaborating with Lexasure enhances the offerings available to farmers and amplifies our potential to instigate sustainable changes in the agriculture sector.”
The partnership aims to utilise AgriG8’s proprietary appraisal system, digital mapping, yield prediction analytics, and loan determination assistance to help farmers strategically improve nutrient efficiency. Moreover, Ian Lim, chief executive officer of Lexasure, stated, “Our partnership with AgriG8 will expedite the digital transformation of rural farming communities in Indonesia, enabling access to markets adhering to ESG and impact investing mandates transparently and verifiably.”
This ambitious partnership also includes a planned pilot trial in each potential Indonesian region to assess business viability and sustainability potential. The inaugural trial will take place near Cilegon in the Banten provinces, adjacent to Jakarta. The formalisation of this proposed strategic partnership awaits the finalisation of definitive agreements, with customary closing conditions, including regulatory approval.
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