Rex Insurance Ltd. in partnership with the Nigerian Meteorological Agency has introduced weather index insurance protecting smallholder farmers from climate-related risks.
The company said on Tuesday the initiative supported climate-smart agriculture by combining insurance with real-time weather data.
It said the approach would improve farmers’ decisions and reduce losses from adverse weather conditions.
At the MoU signing, Chief Executive Officer, Ebelechukwu Nwachukwu, said the partnership signalled a shift toward data-driven agricultural insurance.
Nwachukwu said the firm would leverage NiMet’s location-specific data to power weather and hybrid index products.
She said the solution would guide planting periods, crop management and input usage.
She added it would trigger automatic payouts during extreme events, including drought, flooding or irregular rainfall.
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“Our strategy is to redefine agricultural insurance by combining financial protection with actionable weather intelligence,” she said.
Nwachukwu said Rex Insurance would deploy the solution through its distribution network.
She said extension agents with mobile devices would deliver insurance services and weather advice, including to remote communities.
She noted 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.
NiMet Chief Executive Officer, Charles Anosike, said climate change poses rising threats to crops, livestock and rural livelihoods.
Anosike said weather index insurance uses measurable parameters to activate claims.
He said, combined with crop calendars, it enables informed planting and harvesting decisions.
He added NiMet’s expertise in weather observation would support the initiative’s success.
Rex Insurance and NiMet will pilot the solution under the GIZ–EU-funded VACE Programme to demonstrate impact and accelerate adoption.
The EU-VACE TARED project is funded by the European Union and Germany’s development ministry to transform Nigeria’s agricultural sector.
It is implemented by the German development agency GIZ in partnership with the Nigerian government.
Rex Insurance said the move reinforced its leadership in agricultural insurance innovation, using technology and partnerships to close protection gaps for underserved farmers.
NAN
