InACRI

The overarching objective of the InACRI Project (BMBF) is to improve the performance and uptake of crop index-insurance products in Kenya. Index insurances are regarded as one of the most important advancements in the provision of insurance cover in low-income agriculture, yet a number of technical and operational challenges hinder the widespread implementation of such insurance schemes. Such challenges include an inaccurate and unreliable loss assessment leading to a high basis risk in the insurance product, as well as a limited understanding and awareness of smallholder farmers regarding climate risks and risk transfer mechanisms. Furthermore, the product design and infrastructure for index insurance is often insufficiently geared to the diversity of customer needs. To meet these challenges, the project will present innovative solutions to a) develop an improved index that minimizes the basis risk, b) improve product design making use of modern blockchain technology, and c) conduct effective training for farmers and key players in the value chain.