With the weather becoming increasingly unpredictable and the frequency of man-made disasters rising, it has become crucial for farmers to insure crops and livestock against dangers like wildfires and extreme climate fluctuations.
AFC Insurance general manager and agriculture insurance expert, Mr Cuthbert Masukume recently made the call saying farming insurance was an important tool in climate risk management that can ensure smallholder farmers are able to plant again the following season even if crops fail in the one term.
Mr Masukume urged farmers to take risks and invest more in their farms even when the climate is so unpredictable.
Said Mr Masukume: "Since farming is a serious business, it is necessary for farmers to ensure that their investments are secured and their food security guaranteed."
He commended Government's increased support for agricultural production through creating an enabling environment and raising awareness among farmers on the importance of agriculture insurance.
"We have a wide array of policy options suitable to farmers' various budgets, for example, damage-based indemnity insurance cover can be arranged to cover perils such as frost, flooding, fire, and lightning. The more restricted the cover is, the lower the premium tends to be (ceteris paribus). On the other hand, farmers can also take wider coverage under yield-based multi-peril coverage for a significantly higher premium," explained Mr Masukume.
AFC Insurance endeavours to create tailor-made agricultural insurance solutions for emerging and established farmers in order to meet their needs.
Mr Masukume added that the adoption of technology had also helped reduce their operating costs with the reduction also being passed on to consumers through affordable premiums.
"Technology adoption lowers costs, resulting in affordable premiums because AFC Insurance utilises technology for weather index insurance, utilising satellite data to determine compensation for rainfall deficiencies, drones to streamline crop assessments reducing time and improving efficiency. We have a livestock tracking system, which enhances livestock management," he said.
Recently, Tobacco Industry and Marketing Board (TIMB) joined forces with AFC Insurance to expand the reach of insurance services to ensure the viability and sustainability of farming projects by providing farmers with improved access to insurance coverage.
This saw 6 500 small-scale tobacco farmers taking up insurance for the 2023/2024 season. The insurance facility covers field to floor risks, which include hail and wind damage.
Meanwhile, Insurance and Pensions Commission of Zimbabwe (IPEC) public relations manager Mr Lloyd Gumbo also challenged communal farmers battling the adverse impacts of climate change to safeguard their crops through investing in insurance.
"Communal farmers are the most affected globally, as far as climatic changes are concerned. Micro-insurance and agricultural insurance products can help them recover from the negative aftermaths of climate change, veld fires and other occurrences," he said.
IPEC, in conjunction with the Lands, Agriculture, Fisheries, Water and Rural Development Ministry and insurance and agriculture stakeholders, is now working on the innovation lab project that seeks to guarantee the protection of farmers.
The farmers have always cited various reasons for not taking up insurance cover, chief among them, unfulfilled promises and insurance illiteracy.
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Zimbabwe Farmers Union (ZFU) secretary general Mr Paul Zakariya described insurance as an important component of production, hence the need for farmers to underwrite their livestock, crops and other assets to enable them to get compensation in times of disasters.
"Farmers must know that insurance is not a waste of money but an investment for future wealth and in the event that disaster strikes and they are insured, then they do not lose entirely because insurance will cover them," he said.
He added that farmers must consider the protection of their sales and products as important. Insurance policies can safeguard them against losses related to crop failures, market fluctuations or physical damage to agricultural products.
"ZFU partners with insurers to advocate the significance of farm insurance and its importance to farmers' livelihoods," he added.
