Liberty Mutual Re (LM Re), Sprout, and Britam have launched a parametric insurance product aimed at protecting Kenyan coffee farmers from climate-related risks.
This initiative, born from the Lloyd’s Lab Launchpad Pitch, seeks to provide fast financial relief through payouts triggered by specific weather conditions.
Sprout leverages satellite data and machine learning to analyze historical weather patterns, helping farmers maintain productivity despite climate challenges. LM Re has developed the coverage structure and determined capacity allocation.
This insurance product not only shields farmers from climate risks but also includes real-time advisory services to guide farming practices based on weather forecasts. Premiums, funded by global coffee buyers, reduce costs for Kenyan farmers and enable quicker recovery from adverse weather.
The initiative keeps financial resources in Kenya, supports local agriculture, and promotes sustainable farming. Backed by Kenyan insurer Britam, it aligns with efforts to expand insurance coverage and address the needs of local farmers.
Jean-Christophe Garaix, head of agriculture and parametrics at LM Re, emphasized the company’s dedication to providing innovative insurance solutions that enhance climate resilience in emerging markets.
Partnering with Sprout allows us to combine our reinsurance expertise with their deep understanding of agricultural needs, resulting in a product that offers tangible benefits to Kenyan farmers and provides a stabilising effect for the local economy
Jean-Christophe Garaix, head of agriculture and parametrics at LM Re
Britam Group managing director and CEO, Tom Gitogo, noted that this initiative fits into their sustainability strategy. He emphasized the goal of protecting vulnerable populations, including small-scale farmers, from climate risks, while also advancing financial inclusion. Gitogo pointed out that Britam collaborates with both local and global partners to develop solutions for underserved risks.
Recently, LM Re expanded its reinsurance operations in Australasia by establishing LM Re Australia, replacing the ARUS managing general agent that previously managed its portfolio in the region through Lloyd’s.
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