Today, the Ethiopian Agricultural Insurers Alliance (AICE) was formed in partnership with Pula Consultants to insure three million farmers by 2026.
In order to insure 12 million smallholder farmers against climate-related disasters, the Ethiopian Agricultural Insurers Alliance (AICE) and Pula Consultants held a launch ceremony today at the Hyatt Regency in Addis Ababa. The AICE and Pula Consultants plan to insure 3 million farmers by 2026. With Pula Advisors serving as the technical partner, the consortium consists of five prominent Ethiopian insurance companies: Abay Insurance, Africa Insurance, Ethiopian Insurance Company, Nyala Insurance, and Oromia Insurance.
According to reports, the formation is a technology-enabled solution created to shield farmers from crop-destroying pests and environmental changes. According to reports, the consortium is attempting to address three basic and persistent issues with agricultural insurance in Ethiopia: low-cost insurance models and pricing, low farmer awareness, and insufficient technological use.
To improve affordability, the consortium has combined the government’s Input Voucher System (IVS) with a distributed insurance method. Because of this approach, which significantly reduces premium payments through risk sharing, millions of smallholder farmers have been able to take part. The method is presently being used in more than 200 districts, which helps to increase financial protection. The partnership is trying to bridge the knowledge gap by engaging farmers more widely through training programs, national roadshows, SMS, and IVR messaging. It is also working together with government agricultural professionals to integrate insurance education into existing provided agricultural consulting services to ensure farmers understand the insurance and its benefits.
To improve accessibility and efficiency in the technology sector, the partnership is also utilising digital solutions that Pula Advisors has trademarked. The alliance is also standardising agricultural insurance products, encouraging insurers to work together and share risks, and increasing the effectiveness of information systems and procedures.
As part of today’s event, the association launched its first-ever “Le-Sabelle” insurance, a local production index insurance. This comprehensive coverage is designed to protect farmers from operational risks that can lead to reduced yields. The coverage is said to cover losses from key risks such as drought, excessive rainfall, pests and diseases.
By providing smallholder farmers with a steady income, facilitating finance, and encouraging the use of inputs that increase productivity, such fertilisers and improved seeds, the group hopes to end this cycle.