APA Insurance, alongside six insurance companies, (Amaco, CIC, Heritage, Jubilee, Kenya Orient & UAP) has launched a new multi-peril micro-insurance product that covers smallholder maize farmers against poor yields as a result of adverse climatic conditions, disease, damages by insects etc.  The Area Yield Index Insurance will be provided in partnership with the Government of Kenya, which is offering a 50 per cent subsidy on insurance premium for up to five acres per farmer. The subsidy becomes effective upon farmers’ payment of their share of the premium. The product covers farmers against a shortfall in yield from the expected harvest during the policy period. It covers the farmer for any yield below 80 per cent. The crop insurance product is currently being piloted in Nakuru, Embu and Bungoma counties and will be rolled out to the rest of the counties as the season progress. APA’s Group CEO, Ashok Shah lauded the government for supporting the new product by providing subsidies for the premiums, adding that the new product will contribute towards safeguarding farmers’ livelihoods that are often threatened by adverse climatic conditions. “Smallholder farmers are the backbone of our agricultural production. However, in recent years, they have had to bear huge risk that comes with effects of climate change. The weather is no longer predictable and natural disaster has become more frequent, leading to huge crop losses. We aim to address this challenge to livelihoods, our bread basket and our economy,” Mr Shah said. The Area Yield Index Insurance covers farmers based on the condition of harvest history of the unit area of insurance where the farm falls. For the long rains season, farmers have up to the fourteenth of March to sign up for the cover; and up to the second week of October for the short rains season. Source -  standardmedia.co.ke