Green Delta Insurance is set to roll out livestock identification and indexing service, a first for Bangladesh, with the view to developing a digital database on cattle population.
The livestock can be tracked by outfitting them with a sensor-filled collar, which the insurer will develop with Singaporean InfoCorp Technologies. The Singaporean fintech has successfully rolled out the technology in neighbouring Myanmar.
Cattle farmers can download a mobile app that would inform on the livestock's activity levels, health, age, location and other key behaviours like reproduction activity, which would enable them to improve their profitability.
The cost of each tag will be about $1, said Roy Lai, founder and chief executive of InfoCorp Technologies, at the agreement signing ceremony at Spectra Convention Centre in Dhaka yesterday.
The technology will help to build an ecosystem among farmers, insurers, bankers and micro-finance insurance companies to identify the livestock assets, said Farzana Chowdhury, managing director and CEO of Green Delta Insurance.
The system will enable unbanked farmers to take financing by using their livestock assets as mortgage. At the same time, it will help lenders to keep mortgaged livestock asset in their trace. The solution will also create a livestock insurance platform through blockchain.
Its implementation though would be an uphill task given the lack of awareness among farmers, Chowdhury said, adding that Green Delta will take initiatives to educate them about the technology.