Leadway Pays N111.4m Claims To 3,110 Farmers
To mitigate harvest losses suffered by farmers attributable to pest infestations, drought, prolonged dry spell, soil moisture stress and other adverse climatic conditions attributable to the negative impact of climate change, Leadway Assurance, in partnership with global non-profit and leading Agri-tech businesses, indemnified about 3,110 smallholder rice farmers in Benue and Nasarawa states with over N100 million claims payout.
Leadway Assurance, in collaboration with Heifer International, a global non-profit development, OLAM, a global agri- business company and PULA Advisors, an agricultural insurance and technology company had provided an innovative agric- insurance cover – the Area Yield Index Insurance AYII, Pay At Harvest (AYII-PAH) initiative.
This bespoke insurance solution, which allows farmers to pay insurance premiums after their crops have been harvested and sold, was designed by Leadway Assurance and Pula Advisors to mitigate climate change-induced losses among smallholder farmers in Nigeria and further deepen insurance penetration among rural households in the country.
The implication of this is that these small holder farmers who are usually constrained for cash to buy farm inputs at the beginning of the farming season have the option of paying for their insurance premiums at the end of the season, from the proceeds when the rice paddy have been harvested and sold or from the insurance claims paid by Leadway Assurance to the farmers that have suffered a loss during the season