New climate risk insurance for Kenyan coffee farmers

Liberty Mutual Reinsurance, Sprout, and Britam have launched a parametric insurance product to protect Kenyan coffee farmers from climate risk. This solution, developed through collaboration at the Lloyd’s Lab Launchpad Pitch, offers rapid payouts triggered by specific weather events, providing immediate financial support to mitigate crop failure risks.

Sprout utilizes satellite data and machine learning to analyze historical weather patterns, helping farmers maintain productivity despite climate challenges. Liberty Mutual Reinsurance has been instrumental in shaping the coverage structure and capacity allocation, ensuring the product meets the unique needs of coffee growers.

The scheme, funded by global coffee buyers, minimizes costs for farmers and supports local operations. With Britam’s backing, this product aligns with efforts to close the insurance gap in Kenya and enhance resilience in the agricultural sector.