The insurance industry has an important role to play in addressing food security in Africa and should be seen as an integral part of the agricultural system, President, African Insurance Organisation (AIO), Dr. Ben Kajwang, has said.
He spoke during the opening of the 49th Conference and Annual General Assembly of the AIO, in Algiers, Algeria.
He noted that, according to the Africa Insurance Pulse, agricultural insurance is a good for reducing agricultural production risks caused by weather, pests and market price fluctuations.
It is critical to improving food security by providing a safety net for farmers when there is crop failure or disaster, by reducing vulnerability to climate change, increasing investment in agriculture, improving access to credit and encouraging the adoption of new technologies and practices.
Kajwang said: “In recent years, agricultural insurance has benefited from innovation in products and processes. We also wish to appeal to African governments to provide financial support for the development of agricultural insurance markets in emerging economies.
“In addition to premium subsidies, governments can support the sector by improving the accuracy of data on the sector, enhancing financial education or providing catastrophe reinsurance.”
