Switzerland-headquartered Pula Advisors has launched the Agricultural Insurance Consortium of Ethiopia (AICE) to scale index-based insurance to 3m smallholder farmers by 2026.
The five insurers that are members of AICE are Nyala Insurance, Oromia Insurance, Abay Insurance, Ethiopian Insurance Corporation (EIC) and Africa Insurance Company. The consortium, launched on 3 July, is supported by the Ministry of Agriculture, Ministry of Finance, National Bank of Ethiopia, Association of Ethiopian Insurers and development partners — Bayer Foundation, KfW, World Food Programme, ISF Advisors and FSD Ethiopia.
AICE plans to promote climate resilience through insurance bundled with the government’s input voucher system, which helps reduce premiums through risk pooling and government subsidies, making coverage more affordable for farmers.
Leveraging AI platforms, AICE plans to standardise products, lower costs, and expand coverage to over 200 woredas (districts) through data-driven insurance services that are responsive to farmers’ needs.
AICE is also collaborating with the Ethiopian Agricultural Transformation Institute and regional agriculture bureaux to bridge the gaps in the sector and build resilience among smallholder farmers.
The consortium’s first product is an environmental index insurance solution designed to protect farmers against systemic hazards like drought, excessive rainfall, pests, and diseases. This product has already been piloted successfully across three regions and more than 200 districts.
Pula is an international organisation specialising in agricultural insurance solutions, engaged in innovation through agricultural data science and InsurTech solutions for smallholder farmers, government and business across Africa and Asia.