The National Insurance Commission (NIC) with funding support from the Alliance for Green Revolution Africa (AGRA) has moved to lay down a comprehensive policy for agricultural insurance.
According to the NIC, this policy will be targeted at smallholder farmers to cushion them against risks and uncertainties associated with farming in the country.
Commissioner of Insurance, Justice Yaw Ofori, told Joy Business that agriculture is a good business but one which carries its own risk. Although there is some kind of agricultural insurance in the local market that is sold by the Ghana Agricultural Insurance Pool, there is no national policy. He said, “So we have people who need insurance but they can’t afford it.”
He added, “It’s going to be a national policy whereby there will be some kind of mechanism to intervene when people run into losses as a result of bad weather and other issues.”
A policy has been drafted, to be submitted to the government. Stakeholders which prepared the draft policy include the AGRA, Ministry of Finance, Ministry of Food and Agriculture, Ghana Insurers Association, Ghana Cocoa Board, Peasant Farmers Association, Poultry Farmers Association, among others.
AGRA, founded in 2006, is a partnership-driven institution that is African-led and farmer-centred. It believes that investing in agriculture is the surest path to reducing poverty and hunger in Africa. It works across the continent to help smallholder farmers boost their farm productivity and incomes.
Soyrce: Middle East insurance Review
