World Bank, AIO and ILO facilitate international Agriculture Insurance Workshop
The World Bank, Africa Insurance Organization (AIO) and the International Labour Organisation (ILO) sponsored a three-day workshop on Agriculture Insurance in Kenya from 8th to 10th June 2016.
The workshop brought together 54 representatives from the Kenyan government, players in the insurance market from various African countries and private sector entities actively involved in the development of agriculture sector in Sub-Saharan Africa.
The interactive workshop, which also included a one-day field visit, provided valuable opportunity to participants to share experiences and learn more about Normalised Difference Vegetation Index (NVDI), Area Yield products and other innovations in the field of index insurance.
Agriculture is a key pillar in the Kenyan economy it accounts for 27per cent of the GDP and over 60 per cent of total foreign exchange earnings. The sector provides 80 per cent of all employment opportunities in the country and also ensures reliable food supply. However, agriculture insurance uptake does not reflect this potential.
The workshop was organized to address some of the challenges that face Agriculture Insurance including lack of specialised technical experts, inability of farmers to pay premiums, lack of public awareness, moral hazards, lack of affordable reinsurance support, inappropriate distribution channels among others.
AKI is also undertaking other initiatives to improve uptake of Agriculture insurance this includes a survey to determine the agriculture insurance landscape in the country. Findings from the survey will provide insights into the situation which will determine the strategies to grow the penetration of agriculture insurance.