Liberty Mutual Reinsurance has announced its involvement in a new partnership aimed at supporting Kenyan coffee growers through innovative insurance solutions.
The firm has joined forces with Sprout, an InsurTech specialising in climate risk management, and Britam, a diversified financial services firm in Kenya, which will serve as the local underwriter for the programme, according to InsurTech Insights.
The primary goal of this partnership is to introduce a new parametric insurance product designed to protect Kenyan coffee growers from financial losses due to drought.
By offering rapid payouts in response to specific weather events, the programme ensures that farmers receive immediate financial support, mitigating the risks associated with crop failures. Additionally, the product aims to enhance the resilience of farmers by incorporating real-time advisory services.
Liberty Mutual Reinsurance, known for its extensive experience in supporting parametric insurance solutions, has played a crucial role in shaping the structure of this coverage and capacity allocation.
By collaborating with Sprout, which utilises satellite data and machine learning to analyse and assess historical weather patterns, the partnership leverages advanced technology to provide robust support for farmers. Britam, as the local underwriter, brings its deep understanding of the Kenyan market and commitment to sustainability, focusing on innovative microinsurance solutions that enhance financial inclusion.
This initiative is expected to have a significant impact on the local economy by stabilising the agricultural sector, particularly for smallholder farmers who are most vulnerable to climate risks.
The partnership aligns with Britam’s sustainability strategy and the broader goal of addressing underserved emerging risks in the market.
Jean-Christophe Garaix, Head of Agriculture and Parametrics at Liberty Mutual Re, commented, “This launch is testament to our commitment to providing innovative insurance solutions that empower local communities in emerging markets to be more climate resilient. Partnering with Sprout allows us to combine our reinsurance expertise with their deep understanding of agricultural needs, resulting in a product that offers tangible benefits to Kenyan farmers and provides a stabilising effect for the local economy.”
Ashley King-Bischof, CEO of Sprout, added, “This coffee product is a catalyst to unlock production potential and climate financing options for smallholder farmers in Kenya. Partnering with LM Re allows us to deliver a robust product and support farmers when they need it most.”
Tom Gitogo, Managing Director and CEO of Britam Group, also said, “As part of our sustainability strategy, we aim to champion innovative microinsurance solutions that not only safeguard vulnerable populations, such as small-scale farmers, from climate risks but also deepen financial inclusion among the low-income population. These emerging risks are underserved in the market, and to address this gap, Britam partners with local and global organisations to develop innovative solutions.”
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