Index-Based Livestock Insurance is making maiden underwriting presence in Nigeria insurance market as a product of Leadway Assurance, one of Nigeria’s leading insurance providers, a groundbreaking product that will reshape the insurance landscape in the country.
This innovative insurance offering will enhance the Agricultural sector and provide unprecedented climate-smart risk management support to Nigerian Livestock farmers, cattle herders and pastoralists. Besides, its a unique insurance product that relies on real-time data and indices, such as weather patterns and livestock health indicators, to determine compensation for farmers in the event of losses. This approach eliminates the need for lengthy claims processes and ensures that farmers receive swift and fair compensation when needed. It marks a significant departure from traditional insurance methods and sets a new standard for agricultural insurance in Nigeria.
The livestock insurance cover and its delivery mechanism is a comprehensive insurance cover that seeks to protect poor, vulnerable pastoralists’ households against loss of grasslands due to climate change related risks such as droughts and degradation of vegetation along with unexpected events that may result in the death of the livestock.
The Head of Agric. Insurance at Leadway Assurance, Mr. Fatona Ayoola, expressed his excitement about this milestone in the insurance industry, saying, “The introduction of IBLI is truly a game-changer for Nigerian farmers involved in the livestock production value chain. For too long, our farmers have been exposed to the unpredictability of our weather conditions, attributable to climate change and other unforeseen events that can devastate their livestock, thereby affecting their livelihoods. This innovative product is designed to address the challenges of inadequate pasture/forage for the animals and provide investment and financial security to our livestock farmers, herders and pastoralists.
The MD/CEO of Leadway Assurance, Mr. Tunde Hassan-Odukale featured, commented on the strategic importance of this product for the Nigerian insurance industry, stating, “This launch represents a pivotal moment in our industry’s history. We are redefining insurance product development in Nigeria by leveraging technology and big data to create solutions that directly address the needs of our clients. Index-Based Livestock Insurance is not only a testament to our commitment to innovation but also a testament to our dedication to supporting the growth of Agriculture in Nigeria.”
Mr. Hassan-Odukale continued, “By providing farmers with a reliable safety net through this product, we are not only mitigating risks but also fostering economic stability in the agricultural sector. As a company, we are proud to be at the forefront of this transformation, and we firmly believe that this innovative approach will drive progress and prosperity for Nigerian farmers.”
The benefits of Index-Based Livestock Insurance extend beyond individual farmers to the broader agricultural sector and the Nigerian economy. This product will help farmers recover from losses faster, enabling them to reinvest in their operations and contribute to increased food production, job creation, and economic growth.
Mr. Hassan-Odukale, therefore, invites all stakeholders, including farmers, agricultural organizations, and government agencies, to explore the opportunities presented by Index-Based Livestock Insurance and join Leadway in building a more resilient and prosperous future for Nigerian agriculture.