Bundling agriculture insurance with other services that form part of the agricultural value chain, like credit and farming inputs, is emerging as a solution to help make insurance more tangible and get better outreach and scale faster, manifesting into better economic and social outcomes. A key insight emerging from the cases analysed is that, to make bundling work, it makes a lot of sense to ensure that there are tangible value propositions for all the players involved in the value chain.
MicroSave with ILO’s Impact Insurance Facility has developed use cases of bundling agriculture insurance with agriculture value chains in India, Kenya and Zambia. For instance, bundling agriculture insurance with inputs such as seeds enabled small holder farmers in Kenya to increase investment in their farms and increase productivity. 98 per cent of these farmers could access credit linked with the insurance.