Sundaymail Editor
Sunday Mail Correspondent
AFC Insurance Company is implementing a rapid expansion strategy geared towards accelerating the provision of short-term insurance products starting this summer cropping season.
“AFC Insurance Company comes in as a key agent to drive the financial inclusion agenda, as part of AFC Holdings, which was mandated to sustainably transform agriculture in the country,” said AFC Holdings group chief executive officer Mr Francis Macheka recently.
“The company has been strategically positioned to ensure that no farmer goes uninsured during this summer cropping season and beyond in the event of a drought or crop failure.
“Livestock insurance has also remained neglected for a very long time and we are now covering this as well.”
He said insurance cover was not just meant for large-scale farmers.
The National Development Strategy 1 has set as a priority the promotion of weather-based agriculture, including the localisation of seasonal weather forecast and weather-based index insurance mechanisms for small-holder farmers.
“Insurance has always been perceived as a product for the elite.
“Smallholder farmers, in particular, have always remained exposed whenever there is a drought or crop failure.
“We are now working very closely with the Ministry of Lands, Agriculture, Fisheries, Water and Rural Development to change that notion, as we drive forward the Vision 2030 objective of household food and nutrition security forward,” Mr Macheka added.
“We have been in a pilot phase to test various insurance concepts and are now ready to serve the country and our existing 45-strong branch network will be central to our distribution network,” he said.
AFC Insurance Company will offer indexed insurance products for different crops and agricultural regions, infrastructure development insurance for dam construction, irrigation and other developmental projects.
Traditional products like motor vehicle insurance, as well as fire or property insurance, are also being offered.
“Group synergies remain central in the execution of our insurance strategy. With the AFC Commercial Bank, the AFC Land and Development Bank and the AFC Leasing Company as part of the AFC family, our insurance business is set to offer unparalleled service under one roof. We continue to ensure that we leave no one and no place behind in line with our mandate to transform agriculture and drive financial inclusion across the country,” said Mr Macheka.
The National Agriculture Policy Framework 2019-2030 notes that agricultural insurance uptake remains subdued, exposing farmers to climate change risks, among other hazards, making the industry risky for financiers.
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