To protect farmers against risks through the value chain in agriculture, the Nigerian Agricultural Risk Sharing System (NIRSAL) has developed a new insurance product designed for small farmers – the most vulnerable segment in the agricultural sector.
A statement from NIRSAL says that the product is an improvement to its innovative Area YieldIndex Insurance (AYII) mechanism introduced last year.
He said that the product is especially targeted at small farmers and the Nigerian population as a whole. He explained that "while the coverage provided by the earlier product was limited to crop insurance, the new insurance product" NIRSAL Comprehensive Index Insurance "(NCII) is a combination of a profitability index, a price index and life insurance. It is designed to mitigate the impact and loss of both the risk of return and market price risk – the fundamental risks associated with the possible reduction in production and uncertainty in the market. "
He further explained that "the new insurance product, an innovative form of income insurance, is unique in Africa. It is also the first such product to be achieved without state subsidies for the award. " He said that the deployment of the product begins immediately from the pilot phase of the NIRSAL operations under the CBN's Anchor Borrowers program. "