GAIP's drought index insurance product receives initial claims
The Ghana Agricultural Insurance Pool (GAIP) has begun receiving claims following the launch of its new drought index insurance product.The Ghana Agricultural Insurance Pool (GAIP) has begun receiving claims following the launch of its new drought index insurance product.
This has been developed in collaboration with a number of different bodies, including the Ghana Meteorological Agency, the Ministry of Finance and Economic planning and the Ghana Insurers Association.
With this product now in place, farmers can now receive compensation if a lack of rain leads to them suffering financial losses.
Almost 140 agricultural professionals in Ghana's northern region have received claims so far, with the first payment coming on October 9th.
KwameGazo Agbenyadzie, the chairman of the management board of GAIP, commented: "We want to keep our obligation the farmers by making payouts quickly in order to prove them that GAIP can be trusted."
The organisation believes it is "well positioned to respond to weather challenges" and said it will keep rolling out insurance products that meet the needs of the agricultural industry.
Other stakeholders in the drought index insurance product include the National Insurance Commission, international reinsurance firm Swiss Re and German International Cooperation.