ACRE Africa Weather Index Covers
ACRE Africa Weather Index Covers is a weather based index insurance program for smallholder farmers using mobile technologies.
ACRE Africa Weather Index Covers is the the largest agricultural insurance program in Africa and the first agricultural insurance program worldwide to reach smallholders using mobile technologies. It pays out benefits on the basis of a predetermined index (e.g. rainfall level) or loss of assets and investments resulting from weather and catastrophic events, without requiring the traditional services of insurance claims assessors.
Kenya, Rwanda and Tanzania
Tailored insurance coverage price is available upon request
Goal 2: Zero hunger
Smallholder farmers, agriculture loan providers
Users can obtain the service by contacting ACRE Africa. Smallholder farmers need to provide physical location, acreage and the risks they would like to cover.
By the end of 2013, Kilimo Salama insured 187,000 farmers in three countries.
Estimated number of clients served by ACRE Africa was 394,426 in 2017.
In 2018 ACRE Africa served 31,896 farmers. There was a reduction in farmers insured numbers due to discontinuation of the Replanting Guarantee product that was running using mobile phones and loss of a key client to a competitor. Interview with representative
Connectivity requirement for the product/service to work (Mobile Internet, SMS, voice, Fixed Internet, Wi-Fi, etc)
Device(s) type required for the product/service to work. (smartphone ,feature phone, computer, tablet, other [specify])
Mobile data coverage required for the product/service to work (2G, 3G, 4G, LTE, broadband, dial-up, other [specify])
Connectivity requirement for the product/service to work. Some apps/services can work offline (If No [specify] or Other [specify])
Usage rate for the app/voice-SMS service – to be determined if the manufacturers are willing to share this number.
Device features required for the product/service to work. (Bluethooth, Wifi, camera, IVR, GPS, Accelerometers/Motion sensors, physiologic biosensors, biometric identifiers, SIM, Memory card (e.g microSD), other [specify])
Is the product/service able to receive and send back information to the user?
Support according to the literacy level required from the user. If no, the user is intended to be literate
Operating System required and Software version ((Android, IOs, Windows, or other [specify]))
Power supply required for the product/service to work. (Uninterrupted power supply (UPS), ocassional power supply [minimum time required], other)e
Specify the application that serves the improvement of food system’s outcome (Connection to market, Supply chain information, Education on farming practices, Weather information, Localization information, etc)
Mobile phone technology is essential for the service. M-PESA mobile banking system keeps index insurance premiums affordable for smallholder farmers. Farmers receive their index insurance policy numbers and premium receipts via SMS, and payouts likewise are sent electronically via M-PESA.
The farmer is provided with a term sheet that indicates the technical features of the product indicating the parameters to be used to trigger a loss per crop stage. i.e the rainfall level that indicates a loss at either germination, vegetation, flowering, and maturity (dry down). Interview with representative
The farmer enters a unique code to register for insurance. ACRE Africa monitors the weather at the farmer’s location. An insurance payment is triggered if the weather index indicates the occurrence of adverse weather conditions at the germination phase.
Users can contact the manufacturer.
Reduce the risk from adverse weather and thereby provide a safety net for farmers, promoting increased agricultural investment and improved livelihood
Syngenta claims that insured farmers earned 16% more income compared to their uninsured counterparts.
Sibiko K.W., Veettil P.C. and Qaim M., 2018, Small Farmers’ Preferences for Weather Index Insurance: Insights from Kenya, Agriculture & Food Security, 7(53).
Greatrex H., Hansen J., Garvin S., Diro R., Blakeley S., Le Guen M., Rao K., and Osgood D., 2015, Scaling up Index Insurance for Smallholder Farmers: Recent Evidence and Insights, Climate Change, Agriculture and Food Security, CCAFS Report No. 14, Copenhagen: CGIAR Research Program on Climate Change, Agriculture and Food Security (CCAFS).
Wairimu E., Obare G. and Odendo M., 2016, Factors Affecting Weather Index-based Crop Insurance in Laikipia County, Kenya, Journal of Agricultural Extension and Rural Development, 8(7), pp. 111-121.
Tadesse M.A., Shiferaw B.A. and Erenstein O., 2015, Weather Index Insurance for Managing Drought Risk in Smallholder Agriculture: Lessons and Policy Implications for Sub-Saharan Africa, Agricultural and Food Economics, 3(26).
Sibiko, K. W., and Qaim, M., 2017, Weather Index Insurance, Agricultural Input Use, and Crop Productivity in Kenya, Global Food Discussion Papers, 94.
Johnson, L., 2013, Index Insurance and the Articulation of Risk-Bearing Subjects, Environment and Planning A: Economy and Space, 45(11), pp. 2663-2681.
Carter, M., de Janvry, A., Sadoulet, E. and Sarris, A., 2017, Index Insurance for Developing Country Agriculture: a Reassessment, Annual Review of Resource Economics, 9, pp. 421-438.
Ntukamazina, N., Onwonga, R. N., Sommer, R., Rubyogo, J. C., Mukankusi, C. M., Mburu, J., and Kariuki, R., 2017, Index-based Agricultural Insurance Products: Challenges, Opportunities and Prospects for Uptake in sub-Sahara Africa, Journal of Agriculture and Rural Development in the Tropics and Subtropics, 118(2), pp. 171–185.
Hansen, J., Rose, A., and Hellin, J., 2017, Prospects for Scaling up the Contribution of Index Insurance to Smallholder Adaptation to Climate Risk, CCAFS Info Note.
Evaluated for size of loan portfolio to farmers and index insurance premium income (data from 2011)
In context photographs (0)
You can use the form below to contribute a photo of this product.
In context files & documents (0)
Feedback from users, customers & distributors
Please let us know your experience in using this product through comments below.