Against a wide range of climate risks including drought, excessive rainfall, pests and diseases, and several other perils that negatively affect their yields. We partner with local insurance companies and global reinsurance firms to underwrite risk.
Farmia handles product design, risk placement, farmer education, claims assessment, and payouts.
Area Yield Index Insurance
Farmia’s Yield Index Insurance (YII) covers all risks that affect yield.
YII cover insures the value of the purchased inputs against low yield, and would replace the purchase to registered farmers at the end of the season.
Under this cover, the country is divided into agro-ecological zones (AEZs) based on historical rainfall, temperatures, prior yields etc, and average historical yield data is determined for each zone based on past data.
At the end of the season, trained enumerators measure yield levels for each agro-ecological zone.
With this information, farmers will receive compensation if yields in a specific agro-ecological zone are below a determined trigger level.
Hybrid Index Insurance
Hybrid index insurance
is a combination of Weather Index Insurance (WII) and Area Yield Index Insurance (YII).
It offers comprehensive coverage for farmers as it maximizes on the advantages of both insurance products.
Based on it’s structure farmers can receive quick payout under weather index.
Which would provide farmers with a means of replanting or possibly use funds for other immediate in-season household needs.
This scheme also ensures that farmers receive a comprehensive insurance that covers against all major perils both drought as well as flood, pests and diseases.
Farmia’s Index-Based Livestock Insurance (IBLI) covers pastoralists when pastoral rangelands for grazing are not sufficient, often due to drought or delayed rains. This comes in the form of an asset protection insurance program.
Index-Based Livestock Insurance
Farmia’s Index-Based Livestock Insurance (IBLI) is a comprehensive insurance cover that consists of dekadals (10-day periods) running for one year within which pastoralists are protected when their land for grazing is not sufficient. They are protected against damage to grassland caused by a variety of risks.
The purpose of the cover is to respond to the onset of severe droughts and loss of pasture and grazing reserves by making timely payouts to vulnerable farmers, enabling them to purchase supplementary livestock feed, transport the animals to better grazing land, or for sale,
create water bodies as communities in order to keep their core breeding animals alive during the droughts. As such this is a large-scale asset protection cover.
The index is determined using satellite Normalised Difference Vegetation Index (NDVI) data. NDVI is a measure of the greenness and healthiness of plants on the ground.