Risk assessment and coverage analysis for agricultural insurance innovations in Kenya

Abstract

Crop insurance plays a crucial role in mitigating the financial risks farmers face, especially in developing countries like Kenya, where agriculture is a significant contributor to the economy. The current conventional insurance solutions frequently have to sufficiently examine the dynamics of the agricultural risk characteristic of such environments. The research aims to reinvent risk assessment and insurance provision by using satellite imaging, weather sensors, and the application of data analysis combined with new forms of insurance, including index insurance, parametric insurance, and micro-insurance. By adopting a systematic approach to the research, this work aims to improve the efficiency and availability of Kenyan farmer’s agricultural insurance products. The advancement of such technology could help lessen the economic volatility brought by volatile climates, destructive pests, and diseases, as well as market volatility, thus strengthening the stability of the farmers and guaranteeing food supply and stability. Further, the research is capable of providing possibilities to boost the economic development of rural areas, encourage ecological and efficient approaches to agriculture, and create poverty reduction and other aspects of socio-economic improvement. Mingling critically with other domains of knowledge in this interdisciplinary endeavour is academically fulfilling while reinforcing the global call for resilience, sustainable, and inclusive agriculture systems deemed socially responsible.