ESTHER MSETEKA, Lusaka
NICO Insurance Zambia Limited has this year allocated K5million to its livestock and crop policy to provide financial stability to farmers in times of natural disasters.
This year’s budgetary allocation is an increment from K2 million that was given to the sector last year.
Company chief executive officer Geoffrey Chirwa said interventions to the agriculture sector will help promote agricultural investment and provide financial stability to farmers in case of natural disasters.
In an interview, Mr Chirwa said Nico will continue offering affordable products in the agriculture sector to protect farmers from economic shocks through unpredictable tragedies.
Zambia’s agriculture sector has been faced with various natural disasters such as the armyworm outbreak and El Nino among others.
“Nico Insurance has policies that are tailored towards the agriculture sector and these are under crop and livestock. We basically have a pool of five percent of our gross revenue set aside in terms of any calamities that may occur.
“Last year, about two percent of our revenue base came from the farming community and our target this year is three and half percent. However, when setting aside funds we normally put a higher percentage in case of more problems than we planned,” he said.
Mr Chirwa said the agriculture sector is a fundamental driver of food security in the country and an ingredient for achieving sustainable economic growth.
Meanwhile, Nico Insurance has paid out K43 million in claims to clients in the first half of this year.