GEORGE TOWN, Cayman Islands, May 24, 2023 /PRNewswire/ -- Lexasure Financial Group Limited ("Lexasure" or the "Company"), providing reinsurance, insurance, and insurtech solutions in South and Southeast Asia, and AgriG8 Pte. Ltd. ("AgriG8"), an Agri-Fintech platform making it attractive for institutional lenders to invest in climate-resilient farming, today announced a memorandum of understanding for a proposed strategic partnership to enhance the financial ecosystem available to Indonesian rice farmers, their suppliers, and related financial institutions.
Under the terms of the agreement, AgriG8's technology, enabled by Lexasure's innovative insurance solutions and its partner network of financial institutions that includes banks, microfinance organizations, and other lenders, will offer Indonesian rice farmers access to loans, electing crop insurance, and several farm advisory services through a convenient mobile phone application, while crop monitoring and yield prediction will be available to all stakeholders. Farmers will also be introduced to Lexasure's Flourish mobile application, a separate technology aimed at helping farmers in Southeast Asia stabilize their income, where approved individuals will be able to easily enroll in, manage, and obtain support for their insurance policies.
David Chen, Chief Executive Officer of AgriG8, said, "AgriG8's unique ability to turn agricultural data into economic opportunity and climate-focused transformation in rural farming communities has driven strong growth for our company since our inception two years ago. There are over 20 million smallholder paddy farmers in Indonesia, and their farming practices have an enormous impact on the nation's food security and carbon footprint. Aligning ourselves with Lexasure not only enhances the products and safeguards available for farmers - it will also broaden the network of participating financial institutions and increases our ability to drive sustainable change in the agriculture sector."
The proposed strategic partnership will leverage AgriG8's proprietary appraisal system to identify and engage with high-quality farmers, digitally mapping out farm boundaries, developing analytics to calculate yield predictions, and determining required loan sizes, while helping the farmers to strategically improve nutrient efficiency. The model is intended to lower engagement costs and improve risk mitigation while providing Lexasure and the participating lenders, suppliers, and distributors with a platform to develop tailored opportunities for the previously underserved market.
"Our partnership with AgriG8 is designed to accelerate the digital transformation of rural farming communities in Indonesia and provide our financial partners access to a market that is strongly aligned with ESG and impact investing mandates in a transparent and verifiable manner," said Ian Lim, Chief Executive Officer of Lexasure. "Our insurance and advisory products will empower local farmers while providing protection and resilience that was previously inaccessible."
A pilot trial will be run in each potential geographic region in Indonesia to determine business viability and sustainability potential. The farmlands near Cilegon in the Banten provinces, close to the city of Jakarta will be the site of the inaugural trial.
The creation of the proposed strategic partnership is subject to the negotiation of definitive agreements with customary closing conditions, including regulatory approval.
About Lexasure Financial Group
Lexasure Financial Group is a leading Southeast and South Asia group providing reinsurance and digital insurance solutions, including Reinsurance-as-a-Service (RaaS), that enable our clients to manage risk, accelerate growth, and effectively compete. We are driving the digital transformation of the insurance and reinsurance industry with scalable and innovative products that meet the local needs of companies and people in fast-growing Asian markets. Our management team has deep expertise in the industries of reinsurance, insurance, and insurance tech. Our values are based on a belief that our products enable customers to live and grow boldly while enhancing resilience. We serve over 60 primary insurers across 22 countries in Asia and North America. For more information, go to lexasure.com.
AgriG8 is an Agri-Fintech company connecting the capital markets with the underserved smallholder farming community, enabling the value chain to make better decisions toward creating a sustainable food system. It is the brainchild of Golden Sunland Singapore ("GSS") and Trendlines Agrifood Innovation Centre ("AFIC"). GSS is a certified B Corporation and inclusive value chain company where the founders have more than 30 years of experience in the rice development sector. GSS is also the brand owner of "The Little Rice Company," which sources sustainable rice directly from the fields. For more information visit https://www.agrig8.com
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