Insurance Plc, on Wednesday launched its new product aimed at strengthening the agricultural sector.
Mr Edwin Igbiti, managing director of AIICO, said at the launch of AIICO Agriculture Insurance in Lagos that this would contribute to the growth of agricultural production, economic development and employment in the country.
Igbiti said the move was in response to the urgent need for adequate insurance to protect investments in the agricultural sector, having been approved by the National Insurance Commission (NAICOM) to guarantee agricultural insurance.
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He said that the company has unique opportunities to offer agricultural insurance to Nigerian farmers at all levels and to investors who want to use the huge potential of the sector thanks to their valuable insurance offers.
“AIICO is strategically positioned to become a major player in the provision of agricultural insurance to provide much-needed protection for various players in the value chain of agriculture.
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“The competitiveness of a company depends on understanding the exact needs of farmers through the application of knowledge and experience in this line of insurance business,” said Igbiti.
He noted that for more than two decades, agricultural insurance in Nigeria exclusively dominated state insurance companies.
“However, around 2011, NAICOM took a significant step in opening up space for private insurance companies to close the gaps and strengthen agricultural insurance in Nigeria.
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“Even with this step, not many operators are ready to play in Agric Insurance for obvious reasons,” he said.
According to him, the active participation of insurance companies will require the provision of much-needed protection to farmers and other stakeholders in the agricultural sector in terms of the risks they are exposed to.
The managing director said the company decided to enter as one of the leaders of the insurance company, occupying a strategic position to become a major player in the field of insurance of agricultural products.
He said the company will provide much-needed protection to various players in the agricultural sector and another value chain.
“AIICO insurance has unique opportunities to offer agricultural insurance products, both insurance claims and index, for farmers in Nigeria at all levels, as well as investors in the agricultural sector who want to use the potential of the sector,” said Igbiti.
He said that the courageous step taken by the company to introduce a wide range of agricultural insurance products offered to the market would support initiatives and interventions by governmental and non-governmental organizations.
However, Igbiti encouraged stakeholders to collaborate and support the company's initiative to deliver value to farmers in the entire agricultural chain.
Mr. Abdulhammed Aliyu, Managing Director, Nigerian Risk Management System for Agricultural Crediting (NIRSAL), commended the initiative of AIICO Insurance on an initiative aimed at reducing unemployment.
Aliyu said that this product will reduce the risk associated with agriculture, and will contribute to the development of agriculture.
Aliya, represented by the Executive Director of the Technical, Mr. Babajid Arorosafe, said that agriculture is an integral part of the socio-cultural heritage with high potential in the area of job creation, security and poverty reduction.
He said that NIRSAL will work effectively with AIICO Insurance to take the agricultural sector to the next level with agricultural insurance products.
Aliyu noted that government and private sector intervention would be difficult to implement without an agricultural insurance product.
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