KILIMO SASA: AGRICULTURAL INSURANCE IN KENYA

What is Agriculture Insurance?
Agriculture insurance is the protection which farmers buy from insurance companies for their crops and livestock. Farmers pay small amount of money (premium) to insurance companies to compensate them when they incur losses.
Who are the current agriculture insurers?
The following companies provide insurance covers for various agriculture risks:
1. APA Insurance Company
2. CIC General Insurance Company
3. Kenya Orient Insurance Company
4. ICEA LION General Insurance Company
5. UAP General Insurance Company
6. Jubilee Insurance Company
7. Heritage Insurance Company
8. Madison Insurance Company
9. African Merchant Assurance Co. ltd.
Insurance Products.
Some of the insurance products available in the Kenyan market include the following-:
Crops :

Cover is available for all types of crops, whether rain-fed or irrigated. The following types of crops are covered:

Annuals e.g. wheat, barley, maize, sorghum, rice
Perennials e.g. tea, coffee, sugarcane
Horticulture, e.g. snow peas, French beans, tomatoes,
Floriculture- e.g. roses and carnations
Forestry e.g. eucalyptus, pine, cypress stands
Tree crops e.g. avocados, macadamia
Greenhouses i.e., steel/wood structures and plastic cladding

For rain-fed farming, a multiperil insurance is provided which covers either the input costs or value of expected yields as a result of the following perils:

Perils Covered

» Fire
» Windstrom
» Excessive rainfall
» Uncontollable pests and diseases
» Drought except under irrigation farming
» Hail

PREMIUM RATES OR THE COST OF INSURING CROPS
PREMIUM RATES

These will vary depending on the type of crop. Annuals and perennials will attract around 5% of the value of insured crop
For greenhouse production, crops attract around 1% of their value, while other components of the greenhouse will attract different rates. The final premium will be a summation of the various components
Crop premiums are seasonal, and insurance ends when the crop is harvested
Cover given on a Yield Guarantee basis, up to 65% of the LTAY
Crop Inspections
Once insured, insurer’s agronomists will carry out several inspections to monitor the growth of the crop. Effects of the perils insured on the crop will be noted and recorded. The inspection reports are as follows:
Emergence Report- will confirm the level of insurance based on germination percentage of the crop
Mid-Season Report-will monitor the growth of the crop and capture any variable e.g. drought, nutrient deficiency, weeds, pests and diseases
Pre-harvest Report-will estimate the expected yields

Livestock:

Cattle ( Dairy and Beef )
Shoats - Sheeps and goats
Poultry (Layers and Broilers)
Pigs
Horses
Pets - Dogs
Fish

Perils Covered
» Mortality due to :
- Accidents
- Diseases
- Complications during delivery
- Emergency slaughter on medical grounds
- Fire, Smoke, Lighting
» Theft

PREMIUM RATES OR THE COST OF INSURING LIVESTOCK

These are dependent on the type of livestock, numbers, rearing method and experience of the proposer.
The standard rate is 4% of the value of animals which can go up or down this rate depending on the parameters given above
Livestock cover is annual hence premiums are paid once in a year

Greenhouse :