Executives at the Kenyan Insurtech provider Pula have announced the insurance coverage of over 120,000 Ethiopian farmers against climate disasters, totaling one billion birr (18 million dollars) in insured sums.
“I am delighted to announce the launch of the Largest Crop Insurance in Ethiopia, with a total sum insured of ETB 1 Billion, protecting 122,000 teff and wheat farmers in the Amhara region,” wrote Dagmawi Haileyesus Pula Country Project Manager on LinkedIn.
Pula is a Kenya-based agricultural insurance and technology company specializing in innovative agricultural insurance and digital products designed to assist smallholder farmers. The first phase of its Area Yield Index (AYII) Insurance product for Ethiopian farmers was launched a few months ago.
The insurance product provided by Pula safeguards farmers’ investments, particularly in fertilizers, ensuring they have financial resources available to purchase essential agricultural supplies for the next season in the event of a disaster.
To obtain insurance coverage, farmers pay a premium of 338 birr per bag of purchased fertilizer. In the event of a disaster, they can receive a payout of up to 3,500 birr per bag of fertilizer purchased for 5,000 birr.
“Currently, at the pilot stage of development, partners such as the World Food Program (WFP) and KFW are covering the premium fees. There is a framework in place that will see farmers to gradually bear the cost of the premiums over time, said Dagmawi.
“Our insurance program is integrated into the Input Voucher System (IVS), which already serves over 7.5 million farmers. This integration ensures that farmers gain access to insurance coverage as they visit Cooperatives to purchase inputs through the IVS system,” Dagmawi added.
According to Sukirti Vinayak, Director of Strategy & Research at Pula, the project involves public-private partnerships, climate risk resilience, and agricultural innovation, bringing together a coalition of partners, including WFP, KFW, Tseday Bank, ATI, and Oromia Insurance.