The Insurance and Pensions Commission (IPEC) is spearheading the development of agricultural insurance to improve smallholder farmers' access to suitable and affordable coverage.
Among its undertakings, the IPEC has started drafting the regulatory framework to implement the agricultural index-based insurance project launched by the regulator and the International Finance Corporation in 2023 to provide insurance solutions for smallholder farmers in Zimbabwe, reported Sunday Mail.
The policy paper has been approved by the government through the Ministry of Finance, Economic Development and Investment Promotion. This comes as the agriculture sector continues to face uncertainty owing to climate change, which now often brings dry weather conditions unsuitable for crop production.
Factors that hamper the adoption and growth of agricultural insurance include unaffordable products; inappropriate products; low levels of insurance awareness; and the lack of trust between insurers and farmers.
Zimbabwe Farmers Union secretary-general Mr Paul Zakariya said that there is a need for insurers to tailor their products to suit the income level and category of farmers, including smallholders.
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