Africa Re looking to develop agricultural insurance on a large scale in Nigeria
The insurance company wants to partner with the IFC and the government.Africa Reinsurance Corporation (Africa Re) is planning to develop agriculture insurance on a large scale in Nigeria.
African Re's managing director Cornellie Karekezi told Vanguard: "We have a project to support Nigerian farmers by providing insurance covers against drought and against other diseases. So this will be with the insurance community and our global partners, especially the International Finance Corporation."
He said the government can play a major role to develop agricultural insurance, by allowing farmers to aggregate under co-operatives and by supporting them with the payment of their
Chairman Hassan Boubrik added that this has to be a coordinated effort: "We call on all especially insurance companies, insurance supervisors, and government bodies to work tirelessly to increase the insurance penetration in
our population, and to contribute to the provision of risk management solutions to our communities and countries."
The insurance sector has seen rapid
growth in recent years. In 2015, Nigerian underwriters reported total gross written premiums (GWPs) of nearly N350 billion (€1.06 billion) according to data released by the Nigerian Insurers Association.
This figure was up around 19 per cent on the previous year. However, total GWPs are currently only worth less than 1.0 per cent of GDP.