Lexasure Financial Group Limited and AgriG8 Pte. Ltd. have announced a proposed strategic partnership aimed at enhancing the financial ecosystem available to Indonesian rice farmers, their suppliers, and related financial institutions. The partnership combines AgriG8’s Agri-Fintech platform with Lexasure’s reinsurance, insurance, and insurtech solutions to provide farmers with improved access to loans, crop insurance, advisory services, and mobile applications for managing insurance policies.
The collaboration between Lexasure and AgriG8 seeks to address the challenges faced by Indonesian rice farmers that play a crucial role in the nation’s food security and carbon footprint. With over 20 million smallholder paddy farmers in Indonesia, the partnership aims to leverage AgriG8’s technology and Lexasure’s insurance solutions to empower farmers, enhance product offerings, and broaden the network of participating financial institutions. The ultimate goal is to drive sustainable change in the agriculture sector and support rural farming communities.
AgriG8’s proprietary appraisal system will identify and engage with high-quality farmers, employing digital mapping, analytics, and yield predictions to determine loan sizes and assist farmers in improving nutrient efficiency. By lowering engagement costs and improving risk mitigation, the partnership aims to provide tailored opportunities for an underserved market while offering financial institutions access to a transparent and verifiable platform aligned with ESG and impact investing mandates.
The proposed strategic partnership will undergo a pilot trial in potential geographic regions in Indonesia to assess business viability and sustainability. The initial trial will take place near Cilegon in the Banten province, close to Jakarta.
Lexasure Financial Group is a prominent Southeast and South Asia group specializing in reinsurance and digital insurance solutions. They offer Reinsurance-as-a-Service (RaaS) and innovative products tailored to meet the needs of companies and individuals in Asian markets. With a management team experienced in reinsurance, insurance, and insurance tech, Lexasure serves over 60 primary insurers across 22 countries in Asia and North America. AgriG8 focuses on connecting capital markets with the underserved smallholder farming community. The company aims to facilitate better decision-making along the agricultural value chain to create a sustainable food system. AgriG8 is a collaboration between Golden Sunland Singapore (GSS), a certified B Corporation with expertise in the rice development sector, and Trendlines Agrifood Innovation Centre (AFIC).
The proposed partnership between Lexasure and AgriG8 represents an important step toward improving the financial ecosystem for Indonesian rice farmers. By leveraging technology, insurance solutions, and agricultural expertise, the collaboration aims to empower farmers, enhance their access to financial services, and promote sustainable practices in the agriculture sector. If successful, this partnership could serve as a model for similar initiatives in other regions and contribute to the overall development and resilience of rural farming communities.
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