According to Africa Re, the Nigerian agricultural insurance sector could generate up to 600 million USD in premiums per year. These promising prospects offer insurance companies several opportunities for the innovation and diversification of agricultural insurance [4] products.
At least 16 insurers are licensed by the NAICOM supervisory authority to underwrite agricultural risks in the country. In 2021, the premium income underwritten in this class of business remains very modest with only 10 million USD.
Still according to Africa Re, the agricultural sector remains a major contributor to Nigeria's economic development. It accounts for 30% of the economic production and provides employment to 35% of the population estimated at over 200 million inhabitants.