Innovative insurance service for farmers based on satellite data gets commercial follow up in Uganda
In sub-Saharan Africa, smallholder farmers are vulnerable to risks associated with changing weather patterns. In Uganda, the SUM-Africa project provides satellite based drought Index Insurance to protect farmers.
The SUM-Africa project is supported by the G4AW program of Netherlands Space Office (NSO) and recently a Dutch Company (EARS) signed a long term contract with Uganda Agro Insurance Consortium (AIC) to continue this service.
What are agricultural index insurance?
Agricultural index insurance products are linked to an index, such as temperature, rainfall, crop yield or evapotranspiration, rather than actual loss.
Daily information from satellites, enables independent and continuous monitoring of climatic conditions for crop growth.
This information is used by insurance companies for risk assessment, insurance pricing, and for pay-out calculation. More information on this here