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Operators in Agric value chain must embrace insurance to reduce risk – Universal Insurance boss

The agribusiness sector in Nigeria needs insurance to remain sustainable and achieve long term growth expectation.

Insurance Industry Rakes Up N508 Billion In Premiums And Pays N224 Billion In Claims In 2021- NIA

Universal Insurance Plc has tasked stakeholders in the agricultural value chain to embrace insurance to reduce retained risk, remain sustainable, and achieve long-term growth expectations.

This was disclosed by the Managing Director, Universal Insurance Plc, Benedict Ujoatuonu, on Tuesday when the National Insurance Commission (NAICOM) gave the company approval to underwrite agric insurance.

He said, “Agricultural insurance protects against loss of 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.”

According to him, the ‘no objection’ nod (approval) would enable the company to support farmers and service providers in the agricultural value chain for greater sustainability and economic growth.

Some of the products NAICOM approved are Fishery Agricultural Insurance Plan and Poultry Agricultural insurance plan.

“The agribusiness sector in Nigeria needs insurance to remain sustainable and achieve long term growth expectation. The policy covers death of the poultry animals resulting from accident or disease while the Fishery policy covers loss of fish caused by death and cost of reconstruction of fish pond in the event of collapse,” he added.

What it means

The company has joined leagues of insurance firms that have extended their investment tentacles to the agricultural sector—a move that industry watchers believe would aid insurance penetration and boost investors’ confidence in the sector.

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