Etherisc, a decentralized insurance protocol, and ACRE Africa, a microinsurance issuer, has planned to deliver affordable coverage for the nearly 250,000 smallholder farmers in Kenya.
It has been reported that the Chainlink Community Grant program has been announced this project, which many of whom are expected to be disproportionately affected by climate change over the next three years.
However, the planned platform will also provide insurance policies with payment installments valued as low as the equivalent of 50 cents in local currencies.
The report said that the grant money will be used to finance several aspects of the project, such as developing the smart contracts, building a user-friendly front-end for farmers to interact with, integrating with local payment systems, and various other technical developments.
.@Etherisc is happy to collaborate further with @Chainlink to deliver agricultural insurance in Kenya. #Etherisc Impact solution offers a different kind of crop #insurance that is fair, transparent and affordable for smallholder farmers. https://t.co/IpsIrqoCFV — Etherisc (@etherisc) November 14, 2020
Likewise, a part of this grant will go towards financing studies related to the economics of insurance for agricultural crops in many African countries, with the goal of determining sustainable coverage models for both insurers and farmers.
George Kuria, the CEO of ACRE Africa, said:
“We’re excited to be able to further our work with farmers in East Africa by receiving support through the Chainlink Community grant to help build out and implement a more reliable and cost-effective model for crop insurance with the collaboration of Etherisc.”
Thus, the project is part of a wider trend of growing interest in blockchain technologies spreading across the African continent.