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Digitization of Agriculture Insurance through Parametric solutions

 

Allianz Africa Webinar

March 25, 2021

Allianz experts together with key partners and Africa Re to showcase solutions to closing the protection gap in Africa. 

• Parametrics insurance products as innovative, efficient and fully digital solution to expedite payments to customers. 

• Allianz aiming to leverage its decades of underwriting and digital expertise to become the market leader in agriculture insurance. 

• The second webinar after acquisition in East Africa, in a series to introduce Allianz as a global thought leader and expert in insurance markets. 

 

Nairobi, March 24th: After the digital session held in December on the topic of  “Vaccine Economics, Trade, China and Growth in Africa” with Ludovic Subran, Chief  Economist at Allianz SE, Allianz Africa has today held a second webinar on “The  Digitization of Agriculture Insurance Through Parametric Solutions” in partnership  with Allianz Re.

As Allianz prepares to expand its presence in the East African insurance market - building on a solid foundation in Kenya and with the acquisition of the majority of  shares in Jubilee General Insurance Company in Kenya, Tanzania, Uganda,  Mauritius and Burundi - this event is the second of a series aiming at sharing with  stakeholders pan African solutions that the Allianz Group can offer through its  footprint in Africa, by extending to the continent its expertise as a worldwide  insurance leader.

Allianz Africa brought together agriculture and insurance experts such as Reto  Schneider, Regional Head of Agriculture at Allianz Re, Lovemore Forichi, Senior  Underwriter of Agriculture at Allianz Re, Gregoire Tombez, CEO of WARM  Consulting Group Ltd and Co-founder of Green Triangle, Erastus Ndege Ochieng,  Asset Manager, Agriculture Underwriting at Africa Re, Omondi Kasidhi, Head,  Sustainable Agriculture Sourcing of Diageo PLC and Delphine Traore, COO of Allianz Africa, to discuss the topic.

“There is an ever increasing need to invest in agriculture, given the vital importance  of agriculture as a food source, especially in view of the increase in global  population”, declared Delphine Traoré, to explain the interest of Allianz Africa for 

sustainability in the agricultural sector. Indeed, agriculture production makes up a  substantial portion of the continent’s GDP in Africa, yet only a small portion of the  producers are insured. Raising awareness of the vital role that agriculture insurance  plays in sustaining agricultural production is a key step to increasing insurance  penetration in the sector. Delphine added: “Allianz Africa aims to contribute towards  closing the protection gap and position itself as a leading agriculture (re)insurance  provider on the continent.’’ 

In addition, climate risks increase the need for investments to make agriculture more  resilient, following the panel’s experts. They agreed that the development and  commercialization of agriculture requires financial services that can support. To this  end, agricultural insurance is strategically important for eradicating extreme poverty,  boosting prosperity and protecting livelihoods.

In 2020, the insurance industry recorded a cumulative premium of approx. 300mn  USD from agricultural insurance. The Southern and Eastern regions of Africa  contributed more than 80% of the recorded premium.  

Eastern Africa recently recorded an improvement in its trajectory. Reto Schneider  stated that “the agricultural sector in the insurance industry could reach the potential  of 1bn USD within 10 years, provided that penetration can be substantially  increased.”

During the webinar, parametrics solutions were presented as the direction for the  future. They bring a number of advantages such as high accuracy with state-of-the art satellite information, hybrid products to address additional perils, increased  efficiency through fully paperless processes, fast and automated payouts possible,  high level of traceability, combination with loans and integration of the value chain.

Despite certain limitations, “technology is closing the gap between indemnity and  parametric crop insurance and allows to get the best of both worlds in a single  product”, Gregoire Tombez, CEO of WARM Consulting Group Ltd and Co-founder of  GreenTriangle stated.

To have a reliable parametrics system that provides efficient solutions, the panel emphasized the necessity to bring significant improvements through product  suitability, affordability, value chain efficiency, distribution, information and training. 

 

For further information please contact: 

Reto Schneider 

Tel:  +41 79 250 53 97

E-mail: reto.schneider@allianz.com

 

Ifunanya Ofodile

Tel: +234 813 675 2287

E-mail: Ifunanya.ofodile@allianz.com