BUILDING RESILIENCE IN COVID-19 WITH CLIMATE CHANGE RISK PROTECTION FOR SMALLHOLDER FARMERS


REACH 4 BILLION NEW CUSTOMERS WITH THE MOST COST-EFFECTIVE MICROINSURANCE INFRASTRUCTURE


Blockchain Climate Risk Crop Insurance from Room 3 | NYC on Vimeo.

Our Partners
Climate Finance Lab
Sprout selected as new sustainable investment vehicle
Endorsement
IMPACT
Innovation
The Global Innovation Lab for Climate Finance
Nations, businesses, and investors are working to move toward a low-carbon, climate resilient economy. Many of the measures underpinning this transition, including energy efficiency, renewable energy, sustainable transport, climate smart agriculture, and curbing deforestation, face specific barriers to attracting investment.

By identifying, developing, and supporting transformative sustainable finance ideas, the Lab aims to drive billions of dollars of private investment to the low-carbon economy.
At scale, the instrument can potentially mobilize up to US$ 6 to 10 billion in annual premiums.
The instrument was proposed to the Lab by Sprout Insure, who is leading its development in partnership with ACRE Africa, a recognized intermediary for index insurance across sub-Saharan Africa, and Etherisc, a smart contract developer for different types of index insurance products.

The planned pilot will take place over two to four years, starting from April 2020, and will aim to insure 1.2 mn farmers in Kenya, who will be able to pay the insurance premiums in small installments as low as 50 cents.

At scale, the instrument can potentially mobilize up to US$ 6 to 10 billion in annual premiums. Sub-Saharan Africa provides the best opportunities for replication, especially Burkina Faso, Senegal, and Mali in West Africa and Kenya, Uganda, and Rwanda in East Africa. There is also significant potential in South Asia (India, Bangladesh, and Nepal) and Southeast Asia (Cambodia, Thailand, and the Philippines).
INNOVATION
Blockchain Climate Risk Crop Insurance is a digital platform wherein crop insurance policies are plugged into smart contracts on a blockchain and indexed to local weather. During an extreme weather event, the policies are automatically triggered, which facilitates fair, transparent and timely payouts.

For farmers, the instrument reduces transaction costs during the processing of claims. The Lab estimates that in the long-term, an integrated insurance platform model can reduce the costs required to issue a policy by up to 41%, enabling a premium reduction of up to 30%. Reduced claim cycles, from 3 months to 1 week, and increased transparency also build trust amongst stakeholders.

On the supply side, by creating templates for blockchain-based insurance products, the platform gives third parties (insurers and beyond) the tools to create their own customized insurance product, enabling them to offer weather-indexed crop insurance at scale.
Increasing Farmer's Risk
In developing countries, only 20% of smallholder farmers have access to agricultural insurance coverage, and in sub-Saharan Africa this falls further to just 3%.
ASSET RICH - CASH POOR
Over 500 million Smallholder farmers around the world have limited opportunities to access markets. Selling to Europe and US markets require risky investments and new plant varieties.
UNTAPPED MARKETS
For insurance companies customer acqusition costs and claims processes are too expensive to serve farmers the protection they would need today.
FARMER'S RISKS
This risky investment combined with the uncertainty of weather due to climate change puts farmers at high risk in export!
Farmers becoming #sprouters!
How it works
1
Mobile signup
Farmer signs up for weather insurance product and pays premium via airtime or mobile wallet
2
Blockchain-based Policy
Smart Contract with farmer ID and GPS data is set up
3
Weather data and IoT sensors
Through the season the smart contract collects weather data: RainFall, Temperature, Humidity, Sensors
4
Claims Payout
When weather threshold is reached, farmer premium is paid via automatic mobile money transfer
CUTTING THE COSTS OF FARMER INSURANCES
Autonomous Insurance Product
Affordable weather-indexed crop insurance powered by Blockchain smart contracts.
Customer Acquisition Costs
Are 20% lower in comparison to traditional insurers due to our existing sales channels and a trained local salesforce.
Claims Processing
Thanks to smart contracts on the Blockchain which are powered by data from weather, satellites or sensors we automate claims processes saving hours of paperwork and overheads.
WHAT IS A WEATHER INDEXED INSURANCE?
Insuring farms that in extreme weather conditions are likely to produce low or no crops. Data used in the smart contract algorithm throughout the growing season:
Rainfall
Temperature
Humidity
Wind
Satellite Imagery
IoT Sensors
Being with Sprout is different
Features
Traditional Microinsurances
Sprout
Transparent insurance system
Clear terms and policies
Friendly claims processes
Fast payouts
Mobile optimized
SOCIAL AND FINANCIAL IMPACTS
Supporting local farmers and the community creating jobs and new opportunities for emerging countries.
DIRECT TO FARMER
SPROUT gives farmers peace of mind and new access to credit by taking out the risk in the farming. Farmers are able to invest in most important crops and pay for school fees and inputs for the next season. This enables a dramatically reduced exposure to shocks and a guaranteed income for farmers and their families.
DIRECT TO COMMUNITIES
Trained SPROUT field agents sign up farmers to provide them the knowledge they need to decide to buy insurance for the season. Field agents make a commission on every insurance premium sold, incentivizing them appropriately. We therefore especially support woman in resource poor communities and train them for employment opportunities


Who we are
We are driven by the mission of using technology to bring peace of mind to rural farmers and building a sustainable future for their countries.
Ashley King-Bischof
Co-Founder Sprout
Fervently committed to women smallholder farmers around the world. Experience working globally from successful Internet startups, NGOs and Social Enterprises. Enjoy infusing technology, design and business acumen into the toughest challenges facing the world.
Sandro Stark
Co-Founder Sprout
Sandro is driven by the passion of translating technologies like Blockchain, AI and IoT into solutions improving farmers live on planet. He has 5+ years experience in B2B Technology Sales and Industry Development at Microsoft. As an Industry Lead, he successfully orchestrated internal teams, partners and ISV in a mulit-million dollar segment.


Want to become a Sprouter?
Thank you for your interest in Sprout. Don't hesitate to contact us. We will be happy to answer all your questions regarding our solution and service offerings.



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