Milk Makes People Great About Acre Africa Agricultural Risks Why Dairy Insurance Challenges Way Forward We are a micro-insurance product designer linking stakeholders in the agricultural sector to insurance products through localized solutions that reduce climate-associated risk. We operate as an insurance intermediary – an organization that is not an insurance company, but rather working with local insurers and other stakeholders in the agricultural insurance value chain. We are a registered insurance surveyor in Kenya, an insurance agent in Rwanda, with registration on-going in Tanzania. We have 24 staff members from diverse professional fields such as Insurance, Agriculture and Veterinary Sciences, Actuarial Science, Marketing and Finance

1. Acre Africa
Introduction
May 2015

2. Milk Makes People Great

3. Benefits of milk to both humans and wildlife

4. Overview
• About Acre Africa
• Agricultural Risks
• Why Dairy Insurance
• Challenges
• Way Forward

5. About Acre Africa
• We are a micro-insurance product designer linking stakeholders in the agricultural
sector to insurance products through localized solutions that reduce climate-
associated risk.
• We operate as an insurance intermediary – an organization that is not an insurance
company, but rather working with local insurers and other stakeholders in the
agricultural insurance value chain.
• We are a registered insurance surveyor in Kenya, an insurance agent in Rwanda,
with registration on-going in Tanzania.
• We have 24 staff members from diverse professional fields such as Insurance,
Agriculture and Veterinary Sciences, Actuarial Science, Marketing and Finance

6. Business Model

7. Credit life and Funeral Cover(Premium 0.75%)
Group Mortality Cover(Premium 2.5%)
Accidental Death Cover(Premium 3.5%)
Product Categories

8. Risks Faced by Players in The Dairy Value Chain
• Weather risks : Risks of abrupt and extensive drought
• Disease risks : Risks of contagious disease outbreaks of resistant strains
• Credit risks : Default due to either loss of animal or income
• Political risks : Political uncertainty leading to disruption of farming activities
• Market Risks : Fluctuations in milk prices

9. Why Dairy insurance
• Insurance supports wealth creation
• Wealth for smallholder agriculturalists is often only a ‘hope’ and never a reality as levels
of savings are tenuous and limited
• Risk-aversion stops smallholders investing in increased agricultural technology
• Insurance helps shift some of that burden of potential loss in the system through the
value chain to other actors

10. Challenges
• Insurance companies don’t see the smaller farmer as a profitable client
• Lack of trust
• High transaction costs , low returns and High risks
• Insurance modelling data are limited, patchy and unreliable,
• Poor infrastructure, access to markets is fractured .
• Fraud

11. Way Forward
• Develop insurance packages relevant to farmers
• Take out transactional costs to lower premiums making insurance easily available
and accessible
• Combined insurance products with other value added services (veterinary
services, loss of income cover)
• Capitalizing on the established reputations of known stakeholders
• Built trust by showing it works, payouts can happen and wealth can be created

12. Thank You
Dr.Stephen Dindy
(Product Manager-Livestock Insurance)
(B.V.M,U.o.N)