NIC to establish national policy on agricultural insurance

The National Insurance Commission (NIC) with funding support from the Alliance for Green Revolution Africa (AGRA) has moved to establish 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.

“Agric is a good business but it carries its own risk; although we have some kind of Agric insurance on our market that is being sold by the Ghana Agricultural Insurance Pool, we don’t have a national policy so we have people who need insurance but they can’t afford it.” Commissioner of Insurance, Justice Yaw Ofori told JOYBUSINESS at a 2-day draft agricultural insurance policy workshop.

He added, “we are looking at coming up with a policy to present to government and if the government accepts it, then 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.”

The NIC is optimistic, the draft if embraced, will not only increase insurance penetration and coverage but also create jobs for the youth.

The legislative reform is for the development of Ghana Agricultural Insurance Policy and amendment of Act 724 for the provision of agriculture insurance in the country.

In a speech read on behalf of the Director of Financial Services at the Ministry of Finance, Sampson Akligoh, says the policy will increase productivity, competitiveness, financial inclusion and make the country self-sufficient.

Stakeholders to the draft policy include the AGRA, Ministry of Finance, Ministry of Food and Agriculture, Ghana Insurers Association, COCOBOD, Bureau of Integrated Rural Development (BIRD) of KNUST, Peasant Farmers Association, Poultry Farmers Association, among others.