An insurance partnership between the decentralized protocol Etherisc and microinsurance provider ACRE Africa has enabled thousands of farmers in Kenya to insure themselves against weather-related risks.
Etherisc and ACRE Africa say they have processed insurance payments for some of the more than 17,000 smallholders in Kenya covered by the partnership. The Chainlink Community Fund, the Ethereum Foundation, and the Decentralized Insurance Fund helped fund the project, which was first announced in November 202.
“We are delighted to see the fruits of our labor after months of hard work on this initiative – which is clearly having a social impact on farmers in Kenya who are at risk from the devastating effects of climate change,” said the director of Etherisc Board members Michiel Berende belongs. “The solution we developed with our key partners at ACRE Africa overcomes some of the challenges associated with traditional crop insurance – slow payments, high insurance costs and a lack of transparency. White.”
As part of the initiative, smallholders should be able to pay a premium of only 0.50 US dollars to secure crops affected by climate change klima – Kenya has been badly hit by droughts and floods in the past. Although Etherisc and ACRE Africa say they want to reach around 250,000 farmers in East Africa, some of them have already received insurance paid for using an end-to-end solution on the blockchain.
Etherisc said it had distributed payments to farmers in need through its M-Pesa mobile and cash payment system, with around 6,000 people expected to be compensated for lost or affected crops before the end of the season. There are many flower farms in Kenya, but the country also grows sugar cane, sweet potatoes, corn, and other fruits and vegetables.
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Many have touted blockchain solutions to the myriad problems faced by residents of African countries, from helping women become financially independent to proposing blockchain voting systems to cut costs and enable safer elections. In Zimbabwe, a blockchain-based tracking app enables local farmers to track and trace farm animals, a system designed to facilitate beef exports and increase profits.
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