One of the world’s leading insuring and asset management companies is interested in the agriculture insurance sector in Kenya and the East African region.
Allianz Africa estimates that the value of the agriculture insurance segment to stand at US$10 million but believe it holds the potential to grow to $30 million.
They intend to deploy the solution in collaboration with aggregators such as banks, cooperatives, agro-dealers, and product associations.
Last year, Allianz entered the East African market after signing a strategic partnership agreement with Jubilee Insurance in the five African countries where Jubilee Insurance currently operates.
The collaboration includes general insurance in Kenya, Tanzania, and Uganda, as well as short-term insurance in Burundi and Mauritius.
In Kenya, Uganda, and Tanzania, JHL retains ownership of its life and pensions activities, as well as its medical insurance business.
Agriculture insurance premiums are estimated to be worth $32 billion globally, according to Lovemore Forichi, senior underwriter of Aagriculture at Allianz.
Kenya contributes around $10 million from East Africa’s $18 million contribution.
East African governments and the private sector are collaborating to increase agricultural insurance penetration in the region.” “In Kenya, less than 5% of the farming population is insured,” Forichi said.
President Uhuru Kenyatta’s government and the private sector in Kenya are both strongly contributing to insurance penetration by subsidising premiums for crop and livestock farmers.