Leadway, Others Partner to Provide Insurance Cover for Crop Farmers
Ebere Nwoji
Nigeria’s leading insurer, Leadway Assurance, is partnering with two other firms to offer to Nigerian crop farmers a groundbreaking insurance solution tagged ‘Pay-At-Harvest’ to safeguard their livelihoods against the increasing threats of climate change and global warming.
The two firms are Pula Advisors, a leading insurtech firm with focus on agricultural insurance and technology solutions and Heifer International, a development organisation working to end hunger and poverty around the world.
The “Pay-At-Harvest” insurance scheme, designed to shield crop farmers from the unpredictability of weather risks, especially climate-induced risks, stands out as the most effective protection package for smallholder’s crop farmers in the country.
The innovative insurance product allows farmers to access insurance coverage without the financial pressure of upfront payments. Instead, premiums are deferred until the harvest period, when the farmers are in a strong financial position to make payments after selling their produce or from the insurance compensation paid to them by Leadway after the occurrence of a loss.
This scheme offers protection against unpredictable weather events like floods, droughts, pest/diseases, prolonged dry spell, excessive rainfall etc. ensuring that farmers continue to thrive despite climate challenges.
At a recent webinar organised by Leadway Assurance themed “Climate Change: The Evolving Future of Agribusiness,” Head, Regional Technical Services and Agric. Insurance at Leadway Assurance, Ayoola Fatona, highlighted the critical importance of insurance in supporting farmers facing the harsh realities of climate change. He emphasised that the “Pay-At-Harvest” scheme is a lifeline for smallholder crop farmers, providing them with a financial safety net. “Climate change poses significant risks, particularly for those in the agricultural sector,” said Fatona. “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.” Similarly, Rufus Idris, Country Director of AGRA, reiterated the necessity of insurance as a critical tool for farmers to protect their investments and mitigate climate risks. He noted that insurance is no longer a luxury but a fundamental need for farmers navigating the challenges posed by climate change. Leadway’s partnership with Pula Advisors and Heifer International in delivering this innovative insurance solution reflects the company’s commitment to supporting the agricultural sector and promoting resilience among Nigeria’s farmers. “As climate change continues to affect traditional farming practices, the “Pay-At-Harvest” insurance scheme is positioned as the best package to protect crop farmers’ investments, ensure the sustainability of the nation’s food supply and the strengthening of our food systems”.
