Over the next five years Kenyan cooperative insurer CIC Insurance Group plans to issue over 250,000 livestock microinsurance policies to previously-uninsured, low-income farmers.
The venture, formulated as part of the International Cooperative and Mutual Insurance Federation’s 5-5-5 Mutual Microinsurance Strategy, will equate to 500,000 more cows insured in a country that relies on agriculture for their livelihoods.
“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,” said Tom Gitogo, Group Chief Executive Officer.
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.
“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,” commented Gitogo.
“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.”
Sabbir Patel, CEO of the ICMIF Foundation added, “We are extremely excited about the launch of CIC’s project which will have a real impact to low-income Kenyan farmers and we really appreciate all the hard work of CIC and all their partners.”
“We believe this collaboration between like-minded organisations will be the key strength for this project to succeed.”