Nigeria, Zambia Insurers gets $1.9m funding to underwrite Climate Policies
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The International Finance Corporation (IFC), has supported Nigeria and Zambia insurers with US$1.9million funding to underwrite new insurance climate policies.
The aim is to ameliorate the challenges of smallholder farmers in Nigeria and Zambia.
The IFC’s US$1.94million would provide advisory services for the development of new climate insurance products and risk analytics, helping insurers in the two African countries to underwrite smallholder farmers profitably.
The project targets 2.4million new climate change policies from the two countries in the next three years.
“The primary objective of this project is to improve the resilience of smallholder farmers by increasing their access to climate and other inclusive insurance products,” said the IFC.
Zambia and Nigeria will each be funded to the tune of $970,000 in a programme in which IFC said will also contribute towards increased access to insurance by women farmers while the advisory programme will also help in scaling up the existing climate change insurance products and strengthen the insurers’ business development and underwriting capacity.
IFC further disclosed that the inclusive climate insurance programme will help enhance insurance regulators’ supervisory capacity.
By the end of the programme in June 2025, Zambia underwriters are expected to have issued at least 1.5 million new inclusive climate insurance policies to smallholder farmers, generating premium volume of at least $4million.
In Nigeria, IFC targets to have helped the insurers issue at least 900,000 new such policies, generating total premium volume of at least $3million.