ICMIF member IBISA (Luxembourg) has joined forces with Ensuro and One Acre Fund to deliver a blockchain-based parametric insurance solution for smallholder farmers in Kenya. This initiative fills a major gap in agricultural risk management by offering affordable drought protection during the critical long rain season.
Kenyan farmers often face inadequate insurance options, usually tied only to agricultural loans. To address this, One Acre Fund had partnered with Humanity Insured and others, but the need for broader protection remained. Now, this new pilot programme targets the Rift Valley, providing subsidised additional drought coverage that builds on One Acre Fund’s existing services.
IBISA plays a key role by contributing both funding and its satellite monitoring technology, which enhances real-time weather data tracking for the project. Together with Ensuro, they deliver fast, automated compensation using blockchain smart contracts on the Polygon network.
The insurance system uses a “consecutive dry days” index and a three-phase coverage model:
- 70% payout for critical drought
- 30% for severe drought
- 20% for moderate impacts
Coverage is embedded in the cost of agricultural inputs, removing the need for farmers to make separate insurance purchases. When trigger conditions are met, automatic payouts are made—no paperwork, no delays.
The programme, built on lessons from Ensuro’s ResilientGrowth initiative, aims to reach 20,000 farmers and has the potential to scale across Kenya and beyond. IBISA’s involvement ensures not just greater reach but also more accurate data and delivery.
This partnership shows how collaborative innovation – making full use of IBISA’s satellite capabilities and blockchain integration – can transform agricultural risk management, offering a scalable, cost-effective safety net for smallholder farmers.
