Agriculture continues to be the most risky sector to the extent that many financial institutions do not freely give loans to farmers to boost production.Calamities such as heavy rains and long droughts often leave farmers helpless.
Government has earmarked sh5billion in the next financial year to cater for agricultural insurance, a sign that there are efforts to boost the sector. Ibrahim Kadunabi, the executive Director of the Insurance regulatory Authority says Agriculture thus type of insurance targets all types of farmers who will express interest.
The Insurance regulatory Authority says this type of insurance works in a way that farmers can insure against any risk such as effects of delayed seasons, long droughts and prolonged rains that can have destructive effects on the crops and ultimately the yields. Protazio Sande the director of Market research; a …….. explains that it also applies to livestock farming.
Sande Protazio further says farmers should make agriculture insurance a must have since it brings about a peace of mind for the farmers.
Insurance is one of the services that remain under consumed in Uganda. Current figures from the Insurance regulatory Authority indicate that Insurance penetration is at a dismal 0.85 percent contrary to the earlier target of 1.3 percent penetration by this year. IRA blames this to lack of sensitization, an issue that is among the regulator’s top priorities in the next financial year.