E-Agriculture

juliet Kyokunda

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juliet Kyokunda
juliet KyokundaMICROENSUREUganda

Key challenges- do systems adequately explain products to customers? How can customers complain/ raise queries? Do customers understand product? Is the cost of ICT systems being transferred to customers and making products more expensive? 
 
Solution- ICT systems , which enhance customer understanding of products, referral to complaints team, speedy claims payouts, recovering costs via subsidies, from other stakeholders and recovering other expenses over time, depending on all policies, which would be serviced by the ICT systems. 

juliet Kyokunda
juliet KyokundaMICROENSUREUganda

Better/more granular access to data,
better product development,
Value added services- such as forecasting, pest warnings, crop advisories,
better packaging of products e.g. agri and health, life, insurance and savings etc. 
 

juliet Kyokunda
juliet KyokundaMICROENSUREUganda

 ICT enables greater coverage in an efficient model. So improves financial inclusiveness, gives access to VC financing to farmers exposed to higher risks e.g. higher flood, drought risks.

ICT Can enable automatic insurance coverage linked to VC financing, better understanding of product, better policy administration and speedy claims settlement.

Key challenges include systems compatibility, understanding of product, systems availability and IT capacity, infrastructure (e.g. availability of computers in field offices).  

juliet Kyokunda
juliet KyokundaMICROENSUREUganda

Hello

We would love to come and discuss insurance issues, but i fear that this is so short a notice and we may not make it as we have prior arrangements for those days.

Please keep us informed on future arrangements. Thanks for the interest.

juliet Kyokunda
juliet KyokundaMICROENSUREUganda

There are a number of Agriculture micro- Insurance who use ICT for various purposes and these include:

MFIs/ Banks- use ICT for marketing, policy documentation, enrollment, lend to more remote/ higher risk farmers, lowers risk of defaulting, more penetration of credit  

Farm input suppliers- use ICT for marketing, policy documentation, enrollment, sales promotion, extend outreach, increase customer loyalty and takeup, reduce risk of defaulting 

Meteorological services- VAS's such as crop advisories, pest warnings, flood warnings, seasonal forecasts, better data for validation and analytics

NGOs- use ICT for marketing, better farmer awareness, more access to credit, increased protection from livelihood shocks 

Farmer cooperatives- use ICT for marketing, better farmer awareness, more access to credit, increased protection from livelihood shocks

Government- use ICT for increased outreach, better explanation of policies, increased penetration of credit

Insurance companies- use ICT for better customer experience, efficient claims handling, better data for analysis, marketing

Reinsurance companies- use ICT for better, more transparent speedy data, speedy claims handling, improve transparency in product

juliet Kyokunda
juliet KyokundaMICROENSUREUganda

In day today operations, Micro insurers use ICT in:

i) Clients enrollment- the persons in need of micro-insurance can send and SMS on their mobile phones to a given number and they automatically get on cover. This of course builds on other processes that will have been put in place like client education which explains the product and its features and also the payment process- may be payments through a bank and you include the payment voucher number in the sms to comfirm a payment. This proces ensures that one is covered as soon as they pay and reconciliation becomes easy.

ii) Marketing some of the MicroInsurance products- products like Life which does not need a lot of explaining and also when you are dealing with a community that has previously been exposed to micro insurance. For products like Weather Index insurance, you can only use ICT (currently) to provide information but still you need face to face interactions to market it properly.

iii) Claims notification- for example when selling a life product, when the insured dies or looses a member of his fimily- who is under cover, an sms can be sent to the prior agreed number to report the incident. There and then the process begins to find out the details and also the insurers are notified to prepare the payment. this enables the insurers and the insured group/ institution to get the payment to the affected persons in the agreed time (usually 2-5 days).

This is similar to a trigger notification in case of a weather Index product. ICT can be used to notify the clients, the insurance companies, the concerned institutions and some times the regulators that the trigger levels of a product they bought/ or their clients paid for have been reached and therefore there is a payment coming. still ICT can be used to give the insured instructions on where and when to receive their payments when the triggers are reached.

iv) In claims payment - the quickest and most convenient ways of paying claims are aided by ICT. through mobile phones in some countries and through the banks in others. the phone numbers and bank accounts are provided on purchasing the cover which helps to avoid identification of the beneficiary issues. This has reduced the claims payment turn around time drastically and it helps the clients get the value of what they paid for, which has curbed down alot of other challenges thet would have other wise resulted from the delay in claims settlement like borrowing money from monel lenders to finance the burrial of a loved one or even selling the available piece of land.

v) ICT is essential in the generation of reports on who is on cover, when their polocies started and when they are expiring, sending renewal notifications and also ICT helps in quickening the verification process- you have to know that the person who is claiming paid the premium and how much. In micro insurance, the clients are many and the value of their premiums is small so without ICT, it may take longer to verify and also it becomes very expensive.