As an insurance executive, you understand the importance of protecting your clients' assets against unforeseen risks. However, with the increasing threats of climate change and global warming, traditional insurance products may not be enough to safeguard your clients' livelihoods. That’s why it’s crucial to explore innovative insurance solutions that can provide financial safety nets for those facing the harsh realities of climate change.

One such solution is the “Pay-At-Harvest” insurance scheme, recently unveiled by Leadway Assurance, Nigeria’s leading insurer, in partnership with Pula Advisors, a leading insurtech focused on agricultural insurance and technology solutions, and Heifer International, a development organization working to end hunger and poverty around the world. This groundbreaking insurance product is designed to shield crop farmers from the unpredictability of weather risks, especially climate-induced risks, and stands out as the most effective protection package for smallholder’s crop farmers in the country.

In this guide, we’ll explore how insurance executives can leverage the “Pay-At-Harvest” insurance scheme to provide their clients with the financial safety net they need to thrive despite climate challenges.

Step 1: Understand the Importance of Insurance in Supporting Farmers

As Ayoola Fatona, Head of Regional Technical Services and Agric Insurance at Leadway Assurance, highlighted in a recent webinar, insurance plays a critical role in supporting farmers facing the harsh realities of climate change. With the increasing threats of unpredictable weather events like floods, droughts, pest/diseases, prolonged dry spells, excessive rainfall, etc., farmers need a financial safety net to protect their investments and ensure their livelihoods.

Step 2: Explore the Benefits of the “Pay-At-Harvest” Insurance Scheme

The “Pay-At-Harvest” insurance scheme offers several benefits for both farmers and insurance executives. For farmers, this innovative insurance product allows them to access insurance coverage without the financial pressure of upfront payments. Instead, premiums are deferred until the harvest period, when the farmers are in a strong financial position to make payments after selling their produce or from the insurance compensation paid to them by Leadway after the occurrence of a loss.

For insurance executives, the “Pay-At-Harvest” insurance scheme provides an opportunity to offer their clients an innovative insurance product that can provide financial safety nets for those facing the harsh realities of climate change. By partnering with Pula Advisors and Heifer International, insurance executives can demonstrate their commitment to supporting the agricultural sector and promoting resilience among Nigeria’s farmers.

Step 3: Educate Your Clients on the Importance of Insurance

As Rufus Idris, Country Director of AGRA, noted, insurance is no longer a luxury but a fundamental need for farmers navigating the challenges posed by climate change. As an insurance executive, it’s crucial to educate your clients on the importance of insurance and how innovative insurance products like the “Pay-At-Harvest” insurance scheme can provide financial safety nets for those facing the harsh realities of climate change.

Step 4: Partner with Riskwolf to Develop Parametric Insurance Solutions

While the “Pay-At-Harvest” insurance scheme is an innovative insurance product that can provide financial safety nets for those facing the harsh realities of climate change, it may not be enough to protect against all risks. That’s why it’s crucial to partner with Riskwolf, a leading provider of parametric insurance solutions.

With Riskwolf, insurance executives can turn real-time data into insurance. Using unique real-time data and dynamic risk modeling, Riskwolf enables insurers to build and operate parametric insurance at scale. By developing parametric insurance solutions, insurance executives can provide their clients with even more comprehensive protection against the increasing threats of climate change and global warming.

Conclusion

As climate change continues to affect traditional farming practices, it’s crucial for insurance executives to explore innovative insurance solutions that can provide financial safety nets for those facing the harsh realities of climate change. By leveraging the “Pay-At-Harvest” insurance scheme and partnering with Riskwolf to develop parametric insurance solutions, insurance executives can demonstrate their commitment to supporting the agricultural sector and promoting resilience among Nigeria’s farmers.

To learn more about the “Pay-At-Harvest” insurance scheme and how Riskwolf can help you develop parametric insurance solutions, get in touch with Riskwolf today.

Source: New Telegraph