Kifiya Financial Technology Plc is developing a Geo-data driven risk-mitigation micro insurance service worth 2.1 Million Euros in partnership with the government of Netherlands, Addis Fortune reported.

The service will start operation in March 2016.

Seventy percent of the cost for Geo-data for Innovative Agricultural Credit Insurance Schemes (GIACIS) project is covered by the Netherlands and the remaining is paid by Kifiya.

Kifiya is a digital finance and payment services provider running Unified Billing System in Ethiopia known as Lehulu. It was established in 2010.

Munir Duri, founder and chief executive officer (CEO) of Kifiya said the technology is instrumental for insurance companies to serve farmers with access to insurance coverage via accurate and diverse weather indicators and protection from weather related threats.

The installation of GeoNetCast equipment was held in the compound of the National Meteorology Agency (NMA) on Thursday April 16, 2015. The installation was handled by ICT of Twente (The Netherlands) with 334,000 euros.

GeoNetCast helps NMA to access a great deal of environmental data on rain clouds and vegetation coverage through satellite connection for data management and visualization in a kilometer area, said Dula Shanko, Deputy Director General of NMA.

The data obtained from GeoNetCast will be transferred to Kifiya’s Insurance Platform Server in 10 days and used as an input to calculate risks like crop loss and to set insurance premium, Said Megerssa Miressa, Director of Micro Insurance Program at Kifiya. He also added based on the data NMA transfers, it will secure a payment.

MicroSave is an international financial consulting company which developed the insurance platform. MicroSave is currently working in 10 countries over Asia and Africa.

Nyala Insurance S.C, Africa Insurance Company S.C and Oromia Insurance had already concluded letters of intent with Kifiya to use this system.

Source: Addis Fortune