Onome Amuge
Nigeria’s leading insurer, Leadway Assurance, has joined forces with insurtech leader Pula Advisors and global development organisation Heifer International to bring a groundbreaking solution tagged “Pay-At-Harvest” to Nigerian crop farmers, enabling them to protect their livelihoods against the devastating impacts of climate change and global warming.
The “Pay-At-Harvest” insurance initiative is considered a protection package for smallholder crop farmers in Nigeria. The innovative scheme offers farmers a unique safeguard against the unpredictable and often devastating impacts of weather-related risks, particularly those driven by climate change.
Under this scheme, farmers can benefit from insurance coverage without the burden of upfront premium payments, as premiums are deferred until the harvest period, when the farmers have sold their produce or received insurance compensation for weather-related losses.
By providing coverage against a range of climate-related risks, such as floods, droughts, pest infestations, prolonged dry spells, excessive rainfall, and more, the scheme ensures that farmers can sustain their livelihoods and continue to thrive in the face of the ever-increasing challenges posed by a changing climate.
At a recent webinar organised by Leadway Assurance, themed “Climate Change: The Evolving Future of Agribusiness,” Ayoola Fatona, head of regional technical services and agricultural insurance at Leadway Assurance, stressed the vital role that insurance plays in safeguarding farmers against the harsh realities of climate change.
According to Fatona, the “Pay-At-Harvest” insurance scheme is a critical lifeline for smallholder crop farmers, offering a financial safety net against the destructive effects of unpredictable weather events.
“Climate change poses significant risks, particularly for those in the agricultural sector.
“Our Pay-at-Harvest model ensures that farmers are covered without the stress of immediate premium payments, allowing them to focus on what they do best, producing food for the nation,” Fatona stated.
In a similar vein, Rufus Idris, country director of AGRA, underlined the critical importance of insurance for farmers navigating the challenges posed by climate change.
According to Idris, insurance is no longer a luxury but a necessity for farmers to safeguard their investments and mitigate the risks associated with unpredictable weather events.
He also pointed out that Leadway Assurance’s collaboration with Pula Advisors and Heifer International in providing the groundbreaking insurance solution exemplifies the company’s dedication to supporting the agricultural sector and fostering resilience among farmers in Nigeria, ultimately contributing to the country’s economic growth and food security.
