1 min
Over the years, farmers have produced crops and raised livestock under controlled risks that were managed properly. In recent years, managing risks has been more difficult as a result of the increasing impacts of climate change. These changes have increased the risks of farming, and more often than not, these risks do crystallize, leaving farmers losing their investment completely or losing their source of revenue. Thus, the need for agricultural insurance has become more important than before.
In Nigeria, agricultural insurance has been in existence for over 3 decades, with the establishment of the Nigeria Agricultural Insurance Scheme. In the last decades, there has been the establishment of many private insurance companies offering agricultural insurance policies. Amongst farmers, agricultural insurance is a popular term, which many of them are aware of. Amongst those I interacted with in the course of my work, the majority are aware of agricultural insurance policies and their importance to their business but only few have used them in the past. Those few had many horrible stories to talk about their experiences with these companies; insincerity, complex processes, delayed payment, poor communication and sometimes, unresponsiveness during claims amongst others. Sadly, I have also experienced some of these issues while working with some insurance companies and we need to fix these as it has negatively impacted the reputation of agricultural insurance, making it difficult to convince farmers to adopt or continue adoption.
Therefore, we need more transparency in the insurance processes, especially the claim process, where farmers understand the step-by-step activities to be carried out when risks happen and can estimate their losses independently. Also, insurance companies need to improve their feedback mechanisms to suit the realities of farmers in the rural communities. Also, regulators need to put more measures in monitoring the activities of insurance companies, especially those who work with vulnerable groups (farmers), and promote more integrity in their operations.
In conclusion, agricultural insurance should not be turned into a scam scheme where farmers only pay a premium and have no claim whenever risks crystallize. As farmers weather the storm of climate change, agricultural insurance should be a leverage and game changer to cope in cases of losses. Therefore as stakeholders, we need to mobilise more resources into the insurance programmes in order to build a more robust system to help manage the avalanche of risks and challenges currently being faced. Let us protect our farmers, not with empty words but with assurance of a working system that helps them bounce back quickly. Let us build a resilient food system now.
Yours-in-Service
Babatunde
Therefore, we need more transparency in the insurance processes, especially the claim process, where farmers understand the step-by-step activities to be carried out when risks happen and can estimate their losses independently. Also, insurance companies need to improve their feedback mechanisms to suit the realities of farmers in the rural communities. Also, regulators need to put more measures in monitoring the activities of insurance companies, especially those who work with vulnerable groups (farmers), and promote more integrity in their operations.
In conclusion, agricultural insurance should not be turned into a scam scheme where farmers only pay a premium and have no claim whenever risks crystallize. As farmers weather the storm of climate change, agricultural insurance should be a leverage and game changer to cope in cases of losses. Therefore as stakeholders, we need to mobilise more resources into the insurance programmes in order to build a more robust system to help manage the avalanche of risks and challenges currently being faced. Let us protect our farmers, not with empty words but with assurance of a working system that helps them bounce back quickly. Let us build a resilient food system now.
Yours-in-Service
Babatunde
Related