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Ugandan farmers have shown faith in the country’s insurance companies

According to data from the Agro Consortium, also known as the Uganda Agriculture Insurance Scheme, the number of farmers receiving insurance to protect their produce against risks increased from 259,224 in June 2021 to 375,640 in June 2022, indicating that more farmers are now protected against insurable risks.

Other areas of growth, according to the aforementioned data includes the number of loans under insurance and written premiums.

For example, insured loans increased from Shs900 billion in June 2021 to Shs1.38 trillion during the period, while gross written premiums in agriculture increased from Shs42.9 billion to Shs70 billion.

According to Mr. Munyaradzi Daka, technical lead of the Agro Consortium, the Uganda Agriculture Insurance Scheme, which began in July 2016, sought to support farmers by providing standardized and subsidized agriculture insurance services, as well as reducing financial losses caused by natural catastrophic events.

The technical lead explained that the scheme aims to increase farmers’ access to credit by ensuring that financial institutions are confident that they will not lose money lent to the agriculture sector in the event of a disaster. The scheme also aimed to identify insurable risks and create packages that farmers could afford.

Agriculture is still one of the most dangerous industries, and it is vulnerable to a variety of hazards, many of which are natural in nature.



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