By Taiye Olayemi
Rex Insurance Ltd. has partnered with the Nigerian Meteorological Agency (NiMet) to introduce weather index insurance that protects smallholder farmers from climate-related risks.
The company said in statement on Tuesday that the initiative supports climate-smart agriculture by combining insurance with real-time weather data.
It added that the approach would improve farmers’ decision-making and reduce losses from adverse weather conditions.
At the signing of the Memorandum of Understanding (MoU), the Chief Executive Officer of Rex Insurance, Ebelechukwu Nwachukwu, said the partnership signalled a shift toward data-driven agricultural insurance.
Nwachukwu said the firm would leverage location-specific data by NiMet to develop weather and hybrid index products.
She said the solution would guide planting periods, crop management and input usage and trigger automatic payouts during extreme events such as drought, flooding and irregular rainfall.
“Our strategy is to redefine agricultural insurance by combining financial protection with actionable weather intelligence,” she said.
Nwachukwu said the company would deploy the solution through its distribution network, with extension agents using mobile devices to deliver insurance services and weather advisory, including in remote communities.
She noted that the initiative would address low rural insurance penetration and strengthen farmers’ resilience to climate variability.
“Weather-driven insurance will help farmers manage risks and protect livelihoods as extreme events increasingly affect yields, incomes and food security,” she said.
The Chief Executive Officer of NiMet, Mr Charles Anosike, said climate change poses increasing threats to crops, livestock and rural livelihoods.
Anosike said weather index insurance uses measurable parameters to trigger claims and, when combined with crop calendars, supports informed planting and harvesting decisions.
He added that NiMet’s expertise in weather observation would support the success of the initiative.
The partnership enables Rex Insurance and NiMet to pilot the solution under the GIZ–EU-funded VACE Programme, aimed at demonstrating impact and accelerating adoption.
The EU-VACE TARED project, funded by the European Union and Germany’s development ministry, aims to support the transformation of Nigeria’s agricultural sector.
It is implemented by the German development agency GIZ in partnership with the Nigerian government.
Rex Insurance said the initiative reinforces its focus on agricultural insurance innovation, using technology and partnerships to expand coverage for underserved farmers. (NAN) (www.nannews.ng)
Edited by Kamal Tayo Oropo
