East Africa’s leading insurance company, Jubilee Insurance
has partnered with six insurance companies, (Amaco, CIC, Heritage, APA, Kenya Orient
and UAP) to launch The Area Yield Index Insurance that covers smallholder maize
farmers against poor yields as a result of adverse climatic conditions, diseases and
damage by insects.
The launch of the product is in partnership with the Government of Kenya, who will
grant a 50 percent subsidy on Insurance premium for up to five acres per farmer. The
Area Yield Index Insurance covers farmers against shortfall in yield below 80 percent
form the expected harvest during the policy period. Jubilee Insurance is currently offering
the product to farmers in Nakuru, Embu and Bungoma counties and later expands to
Smallholder farmers’ account for 75 percent of agricultural production in Kenya, now
farmers can concentrate on production and not the effects of natural disaster and other
risk related crop production with the new cover. This will also help farmers reduce
financial risks as they have limited means as compared to large-scale farmers.
Jubilee Insurance Chief Executive Officer, Partrick Tumbo said: “Agriculture dominates
24 percent of Kenya’s economy therefore, this product will be supporting the heart of our
agricultural production. Smallholder farmers face vast challenges due to climate change,
which is a risk that is uncertain. Jubilee Insurance is determined to help the farmers live
free of huge crop losses.”
The product’s effectiveness is dependent on the farmers’ payment of their share of the
premium and the harvest history of the unit farm. The farmers can sign up before the 14th
March for the long rains and second week of October for the short rains.