Ebere Nwoji

Nigeria’s leading insurer, Leadway Assurance, is making strides to support local crop farmers by partnering with two innovative firms to introduce an insurance solution called “Pay-At-Harvest.” This initiative aims to protect farmers’ livelihoods against the growing threats posed by climate change and global warming.

The collaboration includes Pula Advisors, an insurtech leader specializing in agricultural insurance and technology solutions, and Heifer International, an organization dedicated to eradicating hunger and poverty worldwide.

The “Pay-At-Harvest” insurance scheme is particularly designed to shield smallholder farmers from unpredictable weather-related risks, which are often exacerbated by climate change. By deferring premium payments until harvest time, this insurance product alleviates the financial burden on farmers, allowing them to pay only when they are in a strong financial position—either from selling their crops or receiving compensation from Leadway in the event of a loss.

This scheme offers vital protection against various unpredictable weather events, including floods, droughts, pest infestations, prolonged dry spells, and excessive rainfall, ensuring that farmers can continue to thrive despite these climate challenges.

During a recent webinar hosted by Leadway Assurance titled “Climate Change: The Evolving Future of Agribusiness,” Ayoola Fatona, Leadway Assurance’s Head of Regional Technical Services and Agricultural Insurance, emphasized the crucial role of insurance in supporting farmers grappling with the realities of climate change. “The ‘Pay-At-Harvest’ scheme is essentially a lifeline for smallholder crop farmers, providing them with a financial safety net,” Fatona explained. “Climate change presents significant risks, especially for those in agriculture. Our model ensures that farmers are covered without the stress of immediate premium payments, allowing them to focus on their core mission: producing food for the nation.”

Rufus Idris, Country Director of AGRA, echoed Fatona’s sentiments, underscoring the necessity of insurance as an essential tool for safeguarding farmers’ investments and mitigating climate-related risks. He remarked that insurance has transitioned from being a luxury to a fundamental requirement for farmers navigating the challenges of climate change.

Leadway’s partnership with Pula Advisors and Heifer International to deliver this innovative insurance solution illustrates the company’s dedication to supporting the agricultural sector and enhancing resilience among Nigerian farmers. “As climate change increasingly disrupts traditional farming practices, the ‘Pay-At-Harvest’ insurance scheme stands out as the optimal package to safeguard crop farmers’ investments, ensure the sustainability of the nation’s food supply, and strengthen our food systems,” concluded Fatona.