Pula, an agricultural insurance company, is helping smallholder farmers in Africa, Asia, and Latin America overcome yield risks and improve their livelihoods.
Through its digital actuary platform, Pula customizes insurance products to the specific needs of farmers and their partners. In embedding insurance premiums into farm input costs or credit packages, Pula ensures accessibility to even the most remote farmers.
This approach has garnered support from global investors, with a recent $20 million series B funding led by BlueOrchard, aiming to expand partnerships and introduce livestock covers.
One of the fund’s focuses is to bolster its mission to empower agricultural communities and enhance resilience against climate-related risks.
In recent years, Pula has partnered with organizations like the World Food Programme (WFP) and various agricultural associations, to increase access to crop insurance, offering protection against risks and adverse weather conditions.
One of Pula’s successful collaborations has been with WFP in Kitui, Kenya, where the program has grown from insuring 1,000 farmers to approximately 10,000 over three years.
The insurance payouts, totaling $766,000, have been essential in stabilizing household incomes during droughts and severe weather events, empowering farmers to invest in their families’ well-being and agricultural assets.
Expanding its reach beyond Kenya, Pula partnered with the Central Bank of Nigeria in 2020 to insure over half a million farmers for the wet season. This initiative, which included farmers from the National Cotton Association of Nigeria and Rice Farmers Association of Nigeria, supported agricultural communities across borders.
Pula’s impact is not just on financial compensation. Research conducted by the company indicates that agricultural insurance leads to increased investment in farms, improved yields, and higher household savings. With only 1% of small-scale farmers in Africa currently covered by insurance, Pula’s efforts are important in bridging this gap and empowering agricultural communities.
The company plans to introduce livestock covers in countries like Kenya following a successful pilot program in Nigeria. Additionally, Pula aims to further penetrate markets in Asia and Latin America, building on its success in enhancing the resilience of smallholder farmers worldwide.
Pula leverages historical data and digital tools to design affordable insurance plans that protect farmers against yield losses due to weather events, pests, and diseases.
The impact of Pula’s work is seen in the increased investment, yields, and savings reported by farmers using their products. Additionally, payouts from Pula’s partner insurers have reached over $40 million, directly benefiting close to 1 million farmers.
