NAICOM expands agricultural insurance scheme to protect farmers’ output
By Onome Amuge
The National Insurance Commission (NAICOM) has approved Universal Insurance Public Limited Company’s interest to insure farmers and stakeholders in the agricultural sector.
The insurance company, listed on the Nigerian Stock Exchange (NSE) made the disclosure in a statement, further stressing that the insurance plan covers the fishery and poultry sub-sectors, among others.
Benedict Ujoatuonu, managing director, Universal Insurance, explained that the approval will enable the firm to support farmers and service providers in the agricultural value chain for greater sustainability and economic growth.
Ujoatuonu, therefore, tasked stakeholders in the sector to embrace insurance to boost their resilience.
The managing director also stressed the need for agribusinesses in the country to be insured to remain sustainable and achieve long-term growth targets.
Agricultural insurance, he explained, protects against loss or damage to crops or livestock and it has great potential to provide value to low-income farmers and their communities, both by protecting farmers when shocks occur and by encouraging greater investment in crops.
Benedict noted that the approval will place the company in the rightful position to expand its product offerings to consumers in line with the federal government’s objective to deepen insurance penetration in Nigeria.
Established in 1961, the insurance company was formerly known as the Universal Insurance Company Limited (UNISURE) before its merger with United Trust Assurance Company Limited,Oriental Insurance Company Limited and African Safety Insurance Company Limited, necessitating a name rebrand.
Universal Insurance Company Plc has its head office in Lagos and has operations across the major cities of Nigeria. It is licensed to cover all cases of non-life insurance for individuals, commercial and institutional sectors of which the Nigerian agricultural sector is considered a major priority to strengthen economic development.