Lemonade Crypto Climate Coalition uses AI and blockchain to insure smallholder farmers against climate risks

Farmers are on the frontline of the climate crisis, facing drought, excessive rainfall and pests brought on by a warming planet. Crop insurance can mitigate some of that risk, but it hasn't been an option for millions of smallholder farms.

Aiming to build financial inclusion for those who need it most, global insurance provider Lemonade has created the Lemonade Crypto Climate Coalition. The coalition is combining AI, blockchain and mobile technology to provide agricultural insurance to small-scale farmers.

Using the latest weather tracking and prediction technology, accurate premiums can instantly be calculated based on a field's location and size. That weather data also facilitates claim assessment. Where traditional insurance requires a policyholder to file a claim, the coalition's smart contracts automatically trigger compensation if a flood or drought occurs, and farmers are paid without needing to file anything.

Funding will flow through a blockchain-based capital pool, with opportunities for crypto investors to stake capital there. The insurance will be offered at cost, with an initial rollout in Africa expected later this year; no word yet on which countries will be first.