Picture Based Insurance Comes To The Rescue Of Farmers Against Climate Shocks

With the help of images taken via satellite and smartphones, ACRE Africa’s Picture Based Insurance (PBI) project is working to make smart insurance accessible to Kenya’s smallholder farmers. Doing so will help build awareness and trust around insurance-based products while simultaneously enhancing resilience to challenges posed by climate-related shocks.

In Kenya, 80 per cent of farmers are smallholders. However, despite the critical role they play in providing food for the nation, these farmers face numerous challenges. Smallholder crop yields are traditionally quite low and climate change is not only increasing the incidence of pests and diseases, but heightening the risk of more frequent extreme weather events, including drought and flooding.

“Reports state farmers lose up to 90 per cent of their expected yield due to climate risks,” revealed Lilian Waithaka of ACRE Africa.

Faced with such losses, many smallholder farmers are reluctant to invest in their farms and instead engage in unsustainable practices to try to save money, “such as keeping their children out of school, selling off productive assets, and reducing the quality of their diets,” Waithaka shared.

Hurdles to overcome

Insurance can help cushion smallholder farmers from crop and financial losses that occur as a result of climate change, yet many are reluctant to invest in such schemes. But why?

According to Waithaka, the three main prohibiting factors include;

  • Affordability: traditional insurance schemes are too costly for smallholder farmers,
  • Trust: a lack of trust in insurance products among farmers prevents them from securing insurance premiums
  • Isolated approach: farmers often do not engage with other technologies and practices that can support resilience, such as the planting of stress-tolerant crop varieties, adherence to advisories, and implementing good agronomic practices.

Through their insurance offering – supported by the International Development Centre (IDRC) in partnership with the Australian Centre for International Agricultural Research (ACIAR) – the team at ACRE Africa is taking action to link smallholder farmers to risk mitigation and climate adaptation solutions so they can comfortably invest in their farms.

Counting the payoffs

“The PBI project offers farmers an affordable, innovative, inclusive, climate-smart agriculture solution,” Waithaka stated.

To join, farmers simply dial a USSD code and choose the type of crop they want to cover, after which they are automatically enrolled on the scheme.

To support PBI uptake and enhance trust levels around insurance, ACRE Africa has also established a network of ‘champion farmers’ in Kenya.

“These individuals are key opinion shapers in the villages in which they reside,” explained Waithaka. Two-thirds of champions are women – and it’s been found that female champions are more likely to successfully recruit new women farmers to the PBI scheme.

“At the heart of the PBI approach lies imagery, with photographs taken of farmers’ crops collected using satellites and smartphones – with champion farmers using an app called SeeItGrow to take images of registered farmers’ crops throughout the season, which are then used in the evaluation process at the end of the season,” revealed Waithaka.

The project has developed three different machine learning models to help process the images collected, classifying crops according to their growth stage, type of damage, and extent of the damage. At the end of the season, a panel of experts – comprising insurance companies and agronomists – evaluate the images to give them a ‘score’, which forms the basis from which farmers can make claims.

Building resilience

Farmers who take out PBI are also supported in other climate-related aspects. For instance, ACRE Africa continually provides farmers with training on how to protect their crops against climate shocks, connects them to companies that sell stress-tolerant seed varieties, and use information services to encourage them to adhere to good agronomic practices and advisories.

“By helping build the resilience of smallholder farmers. We’re supporting individuals but also trying to foster economic growth and food security,” stated Waithaka.

ACRE Africa’s approach is proving successful. So far, the champion farmers have collected over 60,000 field images from over 7,300 farmers signed up to the PBI scheme. Of women farmers offered PBI, over half take it up – including Elizabeth, a 42-year-old mother of three living in Machakos County.

“In 2021, she took out insurance cover by paying a premium of US$2. Following a drought later that year, which saw many farmers lose their crops, Elizabeth was able to get US$15 in compensation through her insurance – which she used to buy three bags of seeds to plant the following season,” says Waithaka.

Read: Rising Number Of Snail Eating Kenyans Creates Market For Farmers

>>> Raila’s Daughter Makes It Big in Snail Business

Latest

Captain William Ruto: President’s Namesake With a Decorated Career

Captain William Kipkemboi Ruto is officially known by the name William Ruto, which also happens to be President William Samoei Ruto’s official name.

Amazing Origin of ‘Pesa’ and How Shilling Overtook Foreign Currencies

With the establishment of individual Central Banks for the three East African countries, Kenya began printing and minting its own shilling currency notes under the mandate given to the Central Bank of Kenya in 19676.

Engineer Turned Away by 6 Banks Now Owns Multi-Billion Premium Hotel

In just 12 years, PrideInn Hotels & Resorts has grown from one hotel with 28 rooms to eight hotels in five counties.

Resignation of 3 Standard Group Directors Signals Big Trouble

Standard Group Directors: Media house announced through its Nairobi Securities Exchange filing that Dr Githinji Gitahi - who was an Independent, Non-Executive Director - had quit effective 10th November, 2023.

Follow Us

Newsletter

Don't miss

Tusker Oktobafest Rolls East African Cultures into One

From regional events across Kenya to inaugural gatherings in Uganda and Tanzania, and the Tusker Oktobafest grand finale in Nairobi, the festival harmonized traditions, celebrated diversity, and highlighted the rich cultural tapestry of the East African culture

Lupita’s Little Brother Junior Nyong’o Charting His Own Path in Acting

Junior Nyongó, who is also a musician and a DJ and now a graduate of UC San Diego with an MFA in Acting, is crafting his own solid path in the world of acting with roles in major theatre productions.

Safaricom To Power Tusker OktobaFest Beer Festival

Safaricom’s involvement in OktobaFest as a technology and payments partner will focus on fostering seamless in-festival connectivity, empowering the youth and Gen Z community through Safaricom Hook, and powering digital payments through M-PESA.

Music Producers Launch Organization To Streamline Recording Industry

Recording Industry of Kenya (RIKE) was launched on 9th October 2023. Registered in 2022 as a not-for-profit organization, RIKE aims to promote the collective interests of producers of sound recordings in the country.

Nairobi’s Hero Bar Listed Among World’s 50 Best Bars

World Best Bars: Hero Bar in Nairobi continues to climb the list, moving up six places to No.62 and Johannesburg’s Sin + Tax comes in at No.94. Dubai new entry Ergo is at No.69 and Melbourne’s Byrdi has re-entered the list at No.61.

Kenyan DJs Face Off In Smirnoff Battle Of The Beats Season 3

The Smirnoff Battle of the Beats Season 3, a DJ competition, is poised to unleash an unprecedented musical frenzy countrywide.

The Highs And Lows Of Betty Kyallo, Sisters Show As Season 2 Ends

Kyallo Kulture has always been, above all, about sisterhood, and in Season 2 we have witnessed the charm of it - the ups that gave us wholesome moments as the sisters led by Betty Kyallo spent time together.

DStv Beats CNN, BBC To Become Most Admired Media Outlet In Africa

DStv, MultiChoice Group’s leading broadcast service, has been named...

MultiChoice Revises Subscription Fees For DStv, GOtv

MultiChoice has announced price adjustments on some of their...

Octopizzo: How I Make My Money

"I've been doing this for 12, 13 years. It reaches a point where you no longer need to prove that you can make a hit record," he stated.
BT Reporter
BT Reporterhttp://www.businesstoday.co.ke
editor [at] businesstoday.co.ke

Captain William Ruto: President’s Namesake With a Decorated Career

Captain William Kipkemboi Ruto is officially known by the name William Ruto, which also happens to be President William Samoei Ruto’s official name.

Amazing Origin of ‘Pesa’ and How Shilling Overtook Foreign Currencies

With the establishment of individual Central Banks for the three East African countries, Kenya began printing and minting its own shilling currency notes under the mandate given to the Central Bank of Kenya in 19676.

Engineer Turned Away by 6 Banks Now Owns Multi-Billion Premium Hotel

In just 12 years, PrideInn Hotels & Resorts has grown from one hotel with 28 rooms to eight hotels in five counties.

LEAVE A REPLY

Please enter your comment!
Please enter your name here