- Africa Reinsurance Corporation (Africa Re) and the International Finance Corporation (IFC), have signed an agreement to develop agriculture insurance market space in Nigeria.
- As per the agreement, Africa Re, a pan-African reinsurance organisation, and IFC’s Global Index Insurance Facility will support Nigerian insurance companies to develop agricultural insurance products and strengthen their index insurance business.
Africa Reinsurance Corporation (Africa Re) and the International Finance Corporation (IFC), have signed an agreement to develop agriculture insurance market space in Nigeria. As per the agreement, Africa Re, a pan-African reinsurance organisation, and IFC’s Global Index Insurance Facility will support Nigerian insurance companies to develop agricultural insurance products, and strengthen their index insurance business. The objective is to help protect farmers against environmental risks such as drought, floods, erratic rainfall and other natural hazards. This is expected to lead to innovative and efficient solutions for small farmers. The goal is to mitigate the effects of climate change-related shocks, protect farmers from catastrophic losses and also facilitate access to finance.
The African agriculture insurance market so far is characterised by very low penetration levels. Indemnity-based products were a common feature but became hampered with high costs of administration and the inherent fraud risks made it difficult for underwriters to implement.
Speaking about the agreement, Deputy Managing Director/Chief Operating Officer, Africa Re, Ken Aghoghovbia, expressed the hope that this initiative would help Nigeria to move towards its goal of food security in line with Africa-Re’s mission to support African economic development.
