Sprout, Britam, and LM Re launch parametric insurance for Kenyan coffee farmers

Liberty Mutual Reinsurance (LM Re), a division of Liberty Mutual Insurance Group, has announced a new collaboration with Insurtech firm Sprout, Inc. and Britam, a financial services company serving as the local underwriter.

Together, they are introducing a parametric insurance product aimed at safeguarding Kenyan coffee farmers from financial losses caused by drought.

The newly launched insurance product, created through the Lloyd’s Lab Launchpad Pitch, delivers quick payouts triggered by specific weather events, offering immediate financial relief to help manage crop failures.

Jean-Christophe Garaix, Head of Agriculture and Parametrics, 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.”

Sprout leverages its technology-driven insurance expertise in agriculture, using satellite data and machine learning to evaluate historical weather trends.

This helps farmers maintain productivity despite climate challenges. LM Re has played a key role in developing the coverage and determining the capacity allocation since the product’s start.

Ashley King-Bischof, CEO of Sprout, said: “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.”

Designed to meet the unique needs of coffee growers, the product not only addresses climate risks but also provides real-time advisory services. These services guide farmers on adjusting their practices according to weather forecasts, enhancing their resilience.

Funded by global coffee buyers, the scheme reduces costs for Kenyan farmers while supporting local operations. This ensures that farmers can recover quickly from adverse conditions and sustain their livelihoods.

By keeping resources within Kenya and boosting local agriculture, the product aims to strengthen the local economy and promote sustainable farming.

The product’s launch is backed by Kenyan insurer Britam, which supports regulatory and industry efforts to close the insurance gap and provide better coverage options for local farmers.

Tom Gitogo, Managing Director and CEO of Britam Group, added: “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.”

This website states: The content on this site is sourced from the internet. If there is any infringement, please contact us and we will handle it promptly.