kilimo salama, experiences from kenya farm - pluriagri ...area yield products use district data...
TRANSCRIPT
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Kilimo Salama, Experiences from KenyaFARM - Pluriagri conference - 18 dec 2012Rose Goslinga, Syngenta Foundation
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Comment ça va?
Ca va bien !
Habari ? Mvua ameHabari ? Mvua amefika
Mvua badokufika
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The mandate of Kilimo Salama
“Develop and implement agricultural insurance products
for smallholder farmers”
3
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Traditional Insurance
Large scale farm:US$ 1000 Premium
- US$ 50 Visit Costs + US$950, insure
Small scale farm: US$ 10 Premium
- US$ 50 Visit Costs - US$ 40, can’t insure
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We don’t visit the farm
Weather station, district yield data or satellite data
+ agronomic formula’s to agronomic formula’s to model required rainfall
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Product Development
Areas in which we’ve learnt a lot….
Distribution & Customer
ServiceData
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Rainfall requirements for a good yield
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Area Yield Products Use District Data
807,8
686,63
600
800
1 000
Karongi Beans and 5 year average
Karongi
403,9
-200
0
200
400
2007 B 2008 B 2009 B 2010 B 2011 B
MT
/Ha Karongi 5 year average
Karongi Percentage Difference
Payout threshold
Payout Max
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Western Kenya 2012
6,700 farmers received seed and fertilizer in April 2012
25 m
m 24 days with no rain….
54% loss of sum insured300,000 USD loss
=
April 2012
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Western Kenya August 2012
Early Compensation is now a standard option
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Combinations of Products
807,8
686,63
403,9400
600
800
1 000Area yield Weather index
+
-200
0
200
2007 B 2008 B 2009 B 2010 B 2011 B
Best of both worlds:- Cover for disease and flood risk through area yield index- Fast outcome of weather index products- Micro climates covered through weather index
+
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We tried a variety of distribution channels
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Distribution is key: 4 years of evidence
8,0
00
Nr
of
Farm
ers
5,0
00
19
,00
0
7,0
00
65
,00
0
Total Nr of Farmers
- Individuals: +7000
- Groups: 65,000
Premium:
- Individuals: 2mln Ksh
- Groups: 40mln Ksh
Premium rates:
- Individuals: 5%
(sponsored)
20102009
18
5
2,0
00
2011
5,0
00
2012
Individual sales grows, but groups sales was off the charts.
(sponsored)
- Groups: 5.6%
Average farm size:
- Individuals: 1-2 ac
- Groups: 0.5-1 ac
Gender:
- Individuals: 65% M
- Groups: 60% F
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Challenges with aggregators….
• Delay in releasing loan results in yield losses
• Farmers default when • Farmers default when they know that there is insurance
• Banks focus: we want our credit repaid
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Successful aggregators….
Are interested in the harvestBuy the harvest
Improve farmers incomes
Input + Agri Training on loan
Input + Agri Training on loan
Weather index Insurance
Weather index Insurance
Distributed to groups of farmers
Distributed to groups of farmers
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Servicing your customer….
Improved Retention
Increased Sum Insured
Less Basis Risk
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Data…. Historicals are available
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Implementation structure
SORAS/ UAP
Primary insurer Kilimo Salama/SFSA
• Pilot development,
• Data collection,
• Pricing
• Training local partners
• Weather station
Swiss Re/ Africa Re
Product development,
reinsurer
Ministry of Agriculture
• Yield data collection, reporting and
certification
1818
• Weather station
management
certification
• Weather station regulation
Client Organisation
• Insured on behalf of farmers
• Pays premium
• Informs farmers
• Assess losses
• Disburses compensation
Farmers accessing services including insurance
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A great team