Agricultural Insurance firms have paid out sh16.7b to farmers affected by risks arising from climate and environmental changes that pose a high threat to farmers’ livelihood and business growth altogether.
According to the Ministry of Finance, by the end of December 2021, total claims payout stood at sh16.7b, and written premiums amounted to sh57.5b.
The money was paid out by the Uganda Agriculture Insurance Scheme (UAIS), which is ongoing until Financial Year 2024/25.
The scheme is being implemented by Agro Consortium (U) Limited that consists of 13 insurance companies offering products such as multi-peril crop Insurance, Livestock, Weather Index, Poultry, Apiary, Forestry and Aquaculture Insurance.
The main objective of the scheme is to cushion farmers from losses associated with risks arising from climate and environmental changes that pose a high threat to farmers’ livelihood and business growth altogether.
The scheme also facilitates access to credit from various financial institutions, whose confidence is bolstered by the scheme to support farmers most especially smallholders.
“Cumulatively by the end of December 2021, the scheme had provided cover for over 303,000 farmers. A considerable number of small-scale farmers are covered under weather index insurance whereas large-scale farmers are covered under the traditional multi-peril crop insurance,” the report states.