A five-year project to provide low-income dairy farmers with livestock microinsurance in Kenya will be launched by Kenyan cooperative insurer CIC Insurance Group (CIC) at a formal event taking place today in Nairobi. This venture has been formulated as part of the International Cooperative and Mutual Insurance Federation’s (ICMIF) 5-5-5 Mutual Microinsurance Strategy, which aims to enable microinsurance delivered by mutual and cooperative insurers to reach scale in emerging market countries. The 5-5-5 Strategy is a unique initiative which aims to build the resilience of low-income communities by ensuring the provision of low-cost microinsurance.
Kenya is classified as a low-income country, with 33.6% of its population surviving on an income of less than USD 1.90 per day (UN Human Development Report, 2016). The majority of this population resides in rural areas and relies on agriculture including livestock farming for their livelihoods and which is the backbone of the Kenyan economy. However, livestock in Kenya are vulnerable to a variety of risks and the sudden death of a cow can have serious impacts upon a family’s livelihood.
Tom Gitogo, Group CEO, CIC confirms the proposed impact of the project: “Over the next five years, we plan to issue over 250,000 livestock microinsurance policies to previously uninsured low-income farmers, equating to 500,000 cows insured. CIC will scale up our livestock microinsurance product by partnering with dairy cooperative associations as part of a holistic approach to improving the lives and livelihoods of low-income farmers and their families”.
CIC’s livestock microinsurance policy, first launched in 2009, is a cattle mortality cover for low-income dairy farmers. Through the provision of affordable insurance protection, the farmer is shielded from the financial losses they would otherwise face. As well as providing affordable risk-mitigation solutions, CIC’s livestock policy includes targeted actions on financial literacy training for the intended recipients, as well as access to veterinary services and improved animal husbandry practices. By building an awareness of the role of insurance and providing strategies for risk mitigation, CIC’s project will support the development of a long-term “insurance-friendly” population.
Today’s launch event, hosted by CIC, will be attended by key stakeholders of the project including leaders from CIC, ICMIF representatives in addition to representatives from ICMIF member companies who have been providing support to CIC’s project.
The project launch event will also include a detailed presentation by researchers SBO Research and ACRE Africa on the ICMIF country diagnostic report into the landscape of cooperative and mutual microinsurance in Kenya, which was used as the basis of CIC’s current project.