With approximately 70 million hectares of land and diversity of agriculture enterprises, Nigeria’s Agriculture Insurance market has the potential to generate a premium of over $600m.
The Deputy Managing Director/Chief Operating Officer, African Reinsurance Corporation (Africa Re), Mr. Ken Aghoghovbia, who disclosed this in his address at the third Africa Re Agriculture Insurance Workshop in Lagos, said in the last five years, agriculture insurance received considerable attention from the insurance market players in the country, who have been attracted by the opportunities that stem from the need to commercialise and modernise agric production and the quest of successive governments to diversify the economy.
“Africa Re is committed to taking the leadership role in developing agriculture insurance in Nigeria. However, we also acknowledge that on our own, we may not be able to sustain this noble objective. It is in the spirit that we once again have seen it necessary to engage valued and like-minded partners seated here.”
This two-day event, organised under the IFC Technical assistance provider mandate for the Nigeria Climate insurance project, was targeted at bringing together key stakeholders from the agriculture insurance industry in Nigeria.
At the workshop, 70 delegates, representing a spectrum of organisations were in attendance, to ensure diverse insights and constructive dialogue across variety of sectors.
The primary objective of the workshop was to facilitate a collaborative platform for key industry players, including insurers, government agencies, farmers’ representatives, the insurance regulator, finance institutions, input dealers, and commercial farms.
The gathering also fostered the exchange of knowledge and experiences critical for propelling the agriculture insurance sector forward. Major highlights from the workshop included: Technology Showcase, where Africa Re featured initiatives from its insurance technology partners, demonstrating transformative potentials for the agriculture insurance landscape.
There was also Farmers’ Insights Session where farmer representatives expressed themselves on the challenges and perceptions regarding insurance, thereby enhancing a holistic understanding of the industry.
Facilitated by the Africa Re Agriculture team, with support from the IFC team and external partners, the organisers are optimistic that the outcome of the workshop would lead to review of Agriculture Insurance Performance: evaluating current industry performance; Streamlining Processes: enhancing agriculture underwriting and claim processes; Education: disseminating knowledge on Agriculture insurance procedures; Alignment and Next Steps: fostering collaboration to align on deliverables and define the industry’s next steps.
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