News

  • Do more with your content!Discover PreventionWeb Services
  • GIIF, Africa RE to develop new insurance market for Nigeria’s farmers
    https://www.preventionweb.net/go/64578

    Email sent!

    An email has been sent to the email addresses provided, with a link to this content.

    Thank you for sharing!

    OK

GIIF, Africa RE to develop new insurance market for Nigeria’s farmers

Source(s):  International Finance Corporation (IFC)
World Bank, the (WB)

LAGOS, Nigeria - IFC, a member of the World Bank Group, today announced that it has signed an agreement with Africa RE, a pan-African reinsurance company headquartered in Nigeria, to help thousands of smallholder Nigerian farmers more easily access insurance to protect their crops and livelihoods.

Under the agreement, Africa RE and IFC's Global Index Insurance Facility will help Nigerian insurance companies licensed by Nigeria's insurance regulator, NAICOM, develop agricultural insurance products, and deepen their index insurance business lines. These index insurance products will help protect farmers against environmental risks such as drought, floods, erratic rainfall, and other natural hazards.

Index-based agricultural insurance, which pays out based on transparent parameters like rainfall and does not require costly field visits to verify losses, is an innovative and efficient way for farmers to protect themselves against losses.

Africa RE's Deputy Managing Director/Chief Operating Officer, Ken Aghoghovbia, said, “We are excited to be partnering with IFC in assisting Nigerian insurers to develop appropriate insurance products for smallholder farmers. This initiative will certainly help move Nigeria towards its goal of food security and it is in line with Africa RE's mission to support African economic development.”

Eme Essien, IFC Country Manager for Nigeria, said, “IFC's support for affordable and accessible agricultural insurance will help Nigeria's farmers mitigate the effects of climate-related shocks, protecting them against catastrophic losses and unlocking access to finance. Developing a sustainable agricultural insurance industry also requires a strong commitment from regulators, such as NAICOM, who embrace innovation to help farmers manage their risks.”

Farmers with crop insurance are also more likely to access other financial products, including credit, and to invest in higher quality production inputs. However, the traditional insurance market has largely failed to meet smallholder Nigerian farmers' demand for affordable insurance with its high premiums and transaction costs.

IFC's and Africa RE's specific support to insurance companies will include helping them design specialized insurance products and develop digital platforms so farmers can easily view and compare index insurance offerings from various providers. IFC and Africa RE aim to provide thousands of farmers with access to insurance by the end of 2020. 



Add this content to your collection!

Enter an existing tag to add this content to one or more of your current collections. To start a new collection, enter a new tag below.

See My collections to name and share your collection
Back to search results to find more content to tag

Log in to add your tags
  • Publication date 26 Mar 2019

Please note:Content is displayed as last posted by a PreventionWeb community member or editor. The views expressed therein are not necessarily those of UNDRR PreventionWeb, or its sponsors. See our terms of use