Will agriculture insurance usher in food security?

We are not aware of such complaints from our local partners. They understand that each reinsurance contract is negotiated separately, using various parameters.

In the early stages of product development, one has to calculate the costs in relation to the value of the product offering.

The product should then have a successful life span. Our clients see Swiss Re as a partner who is there for the long haul, and who also offers reliability and important expertise besides price.

One of the trends noticeable in Kenya is the commercialisation of small-holder agriculture where farmers maximise use of their land to obtain high yields. How is this trend likely to shape food security and income derived from agriculture?
A farmer, as an entrepreneur, can choose to hedge production, input cost or output price risks by growing crops that improve revenue.

Part of this revenue, for example, can then be reinvested into modern technology such as mechanisation to improve yields.

However, not all small scale farmers will be able to convert their production into fully commercial crops.

These crops often demand high initial investment and a specific micro-climate to be viable.

Therefore, there will still be a sizeable number of farmers cultivating traditional crops.

This is a healthy mix, and would allow for some progression from pure subsistence farming to commercialisation.