InsureCow, a provider of livestock insurance and management services which was founded in 2022, is expanding its reach across Bangladesh, with plans to venture as well into other emerging markets.
Future plans include integrating blockchain technology for enhanced transparency and IoT devices for real-time health monitoring of livestock, further strengthening the platform's capabilities, according to a blog on the website of Huawei, a mainland Chinese global provider of information and communications technology (ICT) infrastructure and smart devices.
Local entrepreneur Mr Tasvir A Faheem founded InsureCow to provide sustainable financial solutions to smallholder farmers. High-interest debt and financial vulnerability are a reality for as many as 16.6m smallholders with 26m cattle across Bangladesh, hampering their ability to invest in their farms and leading to low productivity and persistent poverty.
Yet, traditional insurance companies shy away from covering livestock, citing difficulties in identification and high risks of fraudulent claims. As a result, insurance penetration remains abysmally low at less than 0.3%. Close to 10 million of these smallholder farmers cannot access any type of bank service.
InsureCow leverages technology to create a platform that would provide asset security and take a systematic approach to ensuring that farmers gain access to formal financial services, farming assistance, vaccination schedules, and affordable insurance products for both farmers and livestock."
InsureCow's approach centres on an AI-powered bovine biometrics engine. This technology creates a unique digital identity of the muzzle of each animal, much like a human fingerprint. Each cow's tamper-proof identity is securely recorded and verified, transforming livestock into trackable digital assets. Insurance companies can offer policies with confidence, knowing they can accurately verify claims with the breakthrough in livestock identification.
The InsureCow app connects marginal farmers with insurance and financial institutions, offering affordable insurance products and access to financial services.
The platform also includes a digital payment system and comprehensive farm management tools, allowing farmers to pay premiums in small, manageable instalments. This flexibility is crucial in an economy where cash flow can be unpredictable and seasonal.
InsureCow’s services are designed to improve farm productivity, enhance financial inclusion, and ultimately increase the resilience and profitability of smallholder farmers. Additionally, the platform offers health and life insurance for both animals and farmers, ensuring holistic coverage and financial security.
"We're not just providing insurance," Mr Faheem emphasised. "We're creating a digital financial identity for farmers who have been invisible to the formal banking sector, and giving these farmers easy access to crucial information to help manage their herds."
The Huawei ICT Incubator program provided the crucial support needed to build the platform.
By enabling secure livestock identification, farmers can use their animals as collateral for loans, improving their financial stability and reducing reliance on high-interest informal loans. Moreover, the inclusion of health and life insurance provides a safety net for farmers.