Leadway Assurance, an insurance company in Nigeria has unveiled what it called Index-Based Livestock Insurance (IBLI) to improve the agricultural sector.
The IBLI will provide climate-smart risk management support to livestock farmers, according to a statement.
“This is 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,” it said.
It said the policy 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, according to the statement.
Fatona Ayoola, head of agric insurance at Leadway Assurance, said the introduction of IBLI “is truly a game-changer for Nigerian farmers involved in the livestock production value chain”.
He said: “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.”