In Nigeria, less than one percent of the farming population have access to insurance cover even though 42 percent of the GDP is represented by agriculture. The Central Bank of Nigeria’s Director, Development Finance Department, Paul Eluhaiwe, lamented that only about 500,000 farmers have insurance cover in the country.
Small-scale farmers in Nigeria are classified as resource poor due to the poor resource-base available to them, especially resources. This causes low productivity due to the fact that they produce purely for subsistence consumption and little marketable surplus. Food production in Nigeria, as in many developing countries is linked with small-scale agriculture. Insurance is considered as one of the most effective means of reducing the vulnerability of the poor from the impacts of disease, theft, violence, disability, fire and other hazard. Insurance protects against unexpected losses by
pooling the resources of the many to compensate for the losses of the few, the more uncertain the event the more insurance becomes the best form of protection.
Farmsurance is a farm micro-insurance service that helps rural farmer access inclusive insurance services and benefits through contributing to a purse deposited at an accredited insurance firm. The challenges of rural farmers accessing insurance services are enormous ranging from awareness, access, technicality, convenience. This service takes insurance to rural farmers who may never go to or have access to insurance systems.
This service acts as an information platform training farmers on the use and benefit of this system, acts as a link to the insurance provider. To be effective, it will include the services of financial advisers. Farmsurance also relates and process claims for each farmer when needed. Typically, we will partner with the Nigerian Agricultural Insurance Corporation (NAIC), Nigeria Agricultural Insurance Scheme (NAIS), Nigerian Agricultural Cooperative and Rural Development Bank (NARCDB), etc which are national agricultural insurance platforms in Nigeria who have for long been trying to bring this solutions to farmers.