From a paltry N1million gross premium four years ago, the Nigerian Agricultural Insurance corporation (NAIC) has catapulted its earnings to N964million.

Its Managing Director, Mr. Kwatri Yusuf said of the company’s performance at a forum in Abuja last week: "Our results have been so impressive. When I took over the administration of the company in 2003, our premium was below N1million. But today, according to our last year result, our premium stands at N964million. Our premium rate has been increasing annually and the reason for this is our diversification into general insurance business. With our experience, we have been able to cut an edge for ourselves, by ensuring that we beat competitors through prompt claims settlement. Our cardinal point is ensuring that claims are paid within 24hours."

On how the corporation contacts its clients, which are mostly peasant farmers in the hinterland, he said: "To reach out to our clients, we have our presence through branch network in the states. Every year, we do a lot of radio jingles in Pidgin English, Igbo, Hausa and Yoruba. Which are targeted at getting clients understand our activities. With much funds now available, we will increase the advertorial to ensure we reach people in the states even down to the local government areas."

Yusuf went on: "The essence of the recapitalisation is to increase our capacity. We desire to have the capacity to shore up our operations. Because of our low capacity level, most of the premiums are sent abroad. With recapitalisation, we now retain bigger risks, thereby retaining the premium which would have been sent abroad. Apart from that, we want to be Information Technology compliant. We also want to have a strong workforce. We seek to have qualified professionals that will boost our image. It is also our desire to equip our branches with the state of the art equipment which will match that in any other insurance company."

On the activities of the organisation, Yusuf said: "The Nigerian Agricultural Insurance Corporation (NAIC) came into operation because the general insurance companies were not interested in doing agricultural insurance due to the rate of natural disasters that are synonymous with agricultural practice in the country. For once a risk is certain to happen, insurance companies would run from it. The Corporation was established by the government to mitigate issues as regards natural disasters in the agricultural sector. Due to the high risk associated with the business, countries across the world, which practice agricultural insurance subsidize it for the farmers for the premium rate is always very expensive for the farmers to afford. The premium rate is shared 50-50 in that the government subsidize it to the tune of 50 per cent while the farmers pay the balance 50 per cent.

"Our major customers are banks which grant agricultural loans, for the law that established the corporation provides that every bank, which grant agricultural loan must be insured by NAIC. As these banks grant loans to farmers, they deduct their premium at source and pass the risk to us, while we go to the state and federal government to get the balance of 50 per cent premium, which is the government subsidy."

NAIC Executive Director in charge of Finance and Administration, Ambassador Bappa Lawal Toro expressed the need for farmers to be adequately educated about how to minimize losses during floods, droughts and pest infections. Toro enjoined members of the All Farmers Association of Nigeria (AFAN) to partner with NAIC with a view to ensuring that farmers take insurance cover as a measure against devastation by natural disasters.

He explained that NAIC’s statutory mandate is to indemnify only farmers who insure their farms with the corporation, saying it is not the duty of NAIC to compensate or offer relief to farmers who never insure with it.

Chief Femi Coker, the Acting National President of AFAN, who is also a Director of NAIC, lauded the efforts of the corporation on prompt payment of claims to insured farmers. He said AFAN was exploring more areas of collaboration with NAIC. Coker lamented rising cases of floods and the devastation of farmlands across the country. He expressed joy that NAIC is organising sensitization campaigns and agricultural extension services in collaboration with AFAN with a view to boosting productivity in the agric sector.

Supporting NAIC’s posture not to compensate farmers who don’t pay premium to the corporation, Coker said since the corporation is not a charitable organisation, "Farmers should not expect to reap where they have not sown at all"

Coker said it is the responsibility of the National Emergency Management Agency (NEMA) as well as those saddled with ecological fund to monitor and offer relief materials to victims of natural disasters..