More opportunities for agric insurance as climate change increases environmental risks
Climate changes resulting to environmental risks of flooding, fire disease and its attendant impact on farm lands in many part of the country have reiterated the need for increased risk management through insurance, expert has said.
The impact, which has been particularly tumultuous for the agricultural industry, especially with the production sector in the last few years has opened up a big window of opportunity for the insurance industry to manage these risks, Bode Opadokun, managing director, Nigerian Agricultural Insurance Corporation has said.
Opadokun who made the observation during an interaction with insurance brokers said risk management in agriculture is now an essential tool for owners of agribusiness to anticipate, avoid and react to climatic shocks.
Citing recent flood experiences in some parts of the country including Sokoto, Kebbi, Adamawa, Rivers, Benue, Ebonyi, Delta, Kogi and others, he said the industry must rise to its responsibility to protect this all important sector of the economy.
He said an effective approach to managing agricultural risks along the entire value chain is therefore needed. “An efficient and effective risk management system for agriculture will preserve the standard of living of those whose means of livelihood depend on agriculture, further strengthen the viability and survival of agribusiness and provide an environment which supports investment in the agricultural sector.”
Opadokun stated that given the huge potential premium potential that agriculture holds for the insurance industry, it has become important that insurance service providers especially brokers, agents and other intermediaries take more than a passing interest in agricultural insurance products and services in order to be able to offer investors in agric business the right service on risk Management.
NAIC is prepared to partner with the NCRIB members in deepening the level of insurance penetration through training and collaborative actions. We are therefore counting on your co-operation towards making this objective achievable, he said.
Opadokun further stated that the Nigerian Agricultural Insurance Corporation is fully prepared to provide security for all Agro Allied Investors in the sector, stating that NAIC has been in the business of agricultural risk management for over two decades. “With our experience in agricultural risks underwriting, we have substantial understanding of the dynamics of the risks inherent in the agricultural sector and proffer the appropriate risk management solutions.”
“In line with the current trend in the agricultural market place, we have designed and deployed various categories of agricultural insurance products, services and policies to specifically manage the risk exposures across the entire agricultural value chain. These products will compensate agric investors in the advent of an event which may adversely affect their businesses.”
According to him, the Corporation has been positioned for the business opportunities which may arise from the upside investment in agriculture by the government and the private sector.
Areas of focus of the company he said include IT infrastructure, awareness, and overhaul of business processes, research and product development, partnerships as well as training and development of human capital.
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