Chronicle Editor
Leonard Ncube, Victoria Falls Reporter
THE insurance industry should adopt a paradigm shift and invest more in agriculture to unlock wider economic opportunities.
Farming is a major economic pillar in Zimbabwe but still receives limited insurance cover, which has tended to raise the sector’s risk profile. The subdued uptake of insurance products in the agriculture sector has been attributed to lack of knowledge about insurance, risks and size of initiatives.
A majority of farmers are of a small-scale profile following the land reform programme, which capacitated local indigenous farmers.
Experts say there is also lack of knowledge on benefits of insurance, while insurers are also not publicising their services with some farmers reportedly still relying on traditional methods.
These emerged during a virtual meeting organised by the Insurance Council of Zimbabwe (ICZ) yesterday to deliberate on how short-term insurance can protect the agricultural community against loss, theft, accident, damage, and other everyday risks.
Zimbabwe Farmers’ Union (ZFU) executive director, Mr Paul Zakariya, said the insurance sector must be innovative to tap into the agriculture sector.
He noted that misinformation, in particular, was a new form of agriculture risk that has emerged in modern day times.
“In Zimbabwe there is a clear oversight in the insurance sector in terms of risk and value for money and we need to revise some of our practices and educate farmers,” said Mr Zakariya.
“Insurers need to be more innovative. The agricultural terrain has changed since the land reform in 2000 such that for one to expect to see huge farmers is not possible.
“Let’s look at who is the farmer. This is an investment that we need to take and tailor make products targeted at farmers.”
Mr Zakariya said a farmer must become profitable through minimisation of environmental risks on operating environment and addressing volatility caused by pre-planting prices and output market price risks.
Among the many risks affecting farmers, he said the weather patterns and climate change, accidents, death, diseases, lack of worker motivation and decent employment, and some human resources were common factors.
ICZ executive director, Mr Tendai Karonga, acknowledged that agriculture was the biggest contributor to the economy but was poorly insured, with a mere five percent cover while insurance for grain crops is non-existent.
He said plans were underway in partnership with the insurance regulator to come up with a national agriculture insurance programme that will provide affordable products-@ncubeleon
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