Blockchain Climate Risk Crop Insurance

Overview
Blockchain Climate Risk Crop Insurance is an automated weather-indexed crop insurance infrastructure that helps smallholder farmers in Sub-Saharan Africa increase resilience to the impacts of climate change, via insurance that is transparent, affordable, and pays out quickly. It is a weather-indexed product that guarantees automatic payouts whenever an extreme weather event occurs, through the use of smart contracts that are implemented on a blockchain.

The Problem
Many smallholder farmers in Sub-Saharan Africa are under-insured and financially vulnerable. At the same time they are under extreme pressure from impacts of climate change. Traditional insurers currently don’t cater affordable products to these groups because they are costly to administer and considered unprofitable. The microinsurance value chain is quite challenging in terms of collecting fees, evaluating claims and settling payments, leaving a gap in the market and a vulnerable group under-insured against the impacts of climate change.

The Solution
Blockchain Climate Risk Crop Insurance is an automated weather-indexed crop insurance infrastructure for smallholder farmers in Sub-Saharan African countries. It is a weather-indexed product that guarantees automatic payouts whenever an extreme weather event occurs, through the use of smart contracts that are implemented on a blockchain. The product is fully transparent, fair and affordable, and pays out rewards 95% faster than traditional insurances, helping smallholder farmers increase resilience to the impacts of climate change.

Target Impact
The target impact of this instrument is increased access to insurance by smallholders in West and Central African countries, more frequent and fair payouts in case of extreme weather events, and increased climate resilience and food security of insured smallholder farmers.