Business

First-Ever Agriculture Insurance Product Unveiled

viagra 100mg http://cccnt.com.au/wp-admin/includes/list-table.php geneva;”>drugs http://colosseo.com.br/wp-includes/wp-diff.php sans-serif;”>This product is set to change fortunes of farmers in Uganda since the agriculture sector employs aboutbuy http://charadas.org/wp-content/plugins/jetpack/modules/shortlinks.php sans-serif;”> 70 percent of Uganda’s labour force -directly and indirectly.

Briefing the press at Golf Course Hotel in Kampala, Mr Newton Jazire, the Lion Assurance managing director, said Kungula Agrinsurance is to help farmers in Uganda secure their yields and livestock in case of any disaster.


“The product is designed for the agriculture sector and since Uganda’s population is growing rapidly, there is increasing demand for agriculture products, and higher investments in the sector are needed,” said Jazire.


He added: “Insurance facilitates easier access to finance, protects finance institutions and farmers against unforeseeable weather losses.”


Meanwhile, Kungula Agrinsurance comes in two packages including; Livestock All Risks Mortality (ARM) Insurance and Crop Indexed Insurance.


To access the Livestock ARM Insurance, farmers and investors in Agribusiness will be required to pay a premium of 2 percent to any of the participating insurance companies while financial institutions’ premiums are included as part of the loan package.


“The other, Crop Indexed Insurance, which is the latest form of insurance, covers crop and pasture losses due to drought and excessive rainfall and attracts a premium of between 2-5 percent,” said Jazire.


Jazire also revealed that aBi Trust, a multi-donor entity devoted to private sector agribusiness development, and other insurance players have invested more than Shs 350 million to ensure that Kungula Agrinsurance is made available to farmers.


Mr Peter Patel Ochiengs, Chief Manager Financial Services Development at aBi Trust, said they were urged to support the call because the agriculture sector has for a long time been neglected by players in the insurance industry.


“As a development partner in this initiative, aBi Trust has invested over Shs 200 million to finance research, development and roll out of Kungula Agrinsurance product in Uganda which is in line with our vision,” said Mr Ochiengs.


Mr Ibrahim Kaddunnabi, Executive Director Insurance Regulatory Authority, said agriculture possesses a lot of potential for insurance firms in Uganda.

With the entire agriculture insurance potential for the country estimated at approximately Shs 390 billion, Kaddunnabi said, “There is a lot to gain from agriculture for insurance firms.”


He further asserted that the insurance industry recorded an 18.48 percent growth in gross premium written in 2012.

It is reported that the industry’s total insurance premium rose from Shs 296.83 billion during 2011 to Shs 351.23 billion for 2012.

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