ImpactAlpha, May 7 – Seventy percent of the African population depends on small-scale farming for subsistence and to earn a living. The New York-based insurance company covers climate-vulnerable small farmers in Africa from changing weather patterns. The company has raised a $6 million Series A funding round backed by MS&AD Ventures, Y Combinator, Western Technology Investment and EchoVC.
WorldCover analyzes farm and climate-risk data from satellites, ground sensors, and mobile phone data and offers low-cost policies through mobile payment platforms like M-Pesa. The company has supported 30,000 farmers in Kenya, Uganda and Ghana since 2015, TechCrunch reports. WorldCover’s early backers included the Gates Foundation and JPMorgan Chase-backed Catalyst Fund for low-cost financial-services providers in underserved markets.
WorldCover isn’t the only fintech company targeting underserved, climate-vulnerable people. Others include the Munich Climate Insurance Initiative’s Livelihood Protection Policy, Fundenuse and Micrédito’s “event-based” insurance for Nicaraguan farmers and VisionFund International and Global Parametrics’ ARDIS initiative.