By Favour Nnabugwu
Insurance companies in Africa sre encouraging smallholder farmers to access insurance at affordable terms while underwriters develop new products that will will help advance agriculture insurance in the country.
The culminated into a deal between Africa Reinsurance Corporation (Africa Re) and the International Finance Corporation (IFC), a member of the World Bank Group.
Africa Re and IFC agreement will help facilitate the development of agriculture insurance market space in Nigeria.
Deputy Managing Director/Chief Operating Officer, Africa Re, Mr. Ken Aghoghovbia, “This initiative would certainly go a long way in moving Nigeria towards its goal of food security in line with Africa-Re’s mission to support African economic development.”
Aghoghovbia, expressed satisfaction with the partnership as it will go a long way in assisting Nigerian insurers to develop appropriate insurance products for smallholder farmers and help move Nigeria towards its goal of achieving food security.
These index insurance products will help protect farmers against environmental risks such as drought, floods, erratic rainfall and other natural hazards..
They believed that the African agriculture insurance market has encountered several challenges that have resulted in the very low penetration levels of this class over the years, but the products became riddled with high costs of administration and the inherent fraud risks made it difficult for underwriters to implement.