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Kenya’s APA Insurance has received the 10th European Microfinance Award in recognition of its response to “Strengthening Resilience to Climate Change.”
Index-based insurance is an innovative approach to insurance whereby payments are linked to easily measure environmental conditions known as an “index” such as the level of rainfall, yields or vegetation levels as measured by satellite directly connected to the loss of agricultural output.
When the index exceeds a particular threshold, farmers automatically receive compensation.
At a ceremony held at the European Investment Bank in Luxembourg, Paulette Lenert, Luxembourg Minister for Cooperation and Humanitarian Affairs, presented the 10th European Microfinance Award to Apollo Group CEO Ashok Shah, of Kenya.
Since 2006, Luxembourg Directorate for Development Cooperation and Humanitarian Affairs, the European Microfinance Platform and the Inclusive Finance Network Luxembourg have been awarding a EUR 100,000 (USD 110,000) prize to the winner and, starting two years ago, EUR 10,000 (USD 1,100) to the two finalists.
In Kenya, where over 75 percent of farmers are smallholders, who are especially vulnerable to the economic impacts of climate change, APA Insurance Ltd currently covers more than 350,000 families whose livelihoods are largely based on agriculture.