AGRIBUSINESS: How to increase insurance adoption in developing countries.

AGRIBUSINESS: How to increase insurance adoption in developing countries.

Farmers in developing countries often rely heavily on their yearly harvest to feed their families. A bad crop can have severe consequences for their livelihood. Despite the significant advantages crop insurances would offer in alleviating this risk, only a small percentage of farmers insure their crops.

 A simple but effective solution tested by researchers from the University of Zurich has increased insurance adoption to over 70 percent. 

 For decades, companies, aid organizations and governments in developing countries have tried to increase the numbers of farmers who insure their crops. However, farmers' adoption remains stubbornly low. 

Lorenzo Casaburi from the Department of Economics at the UZH and his co-author Jack Willis identified a simple solution to increase the take up rates of these insurance. They found that, when it comes to crop insurance, timings and what economists call time preferences are crucial.

 In standard insurance products, premiums are paid at a time when farmers are cash strapped. In addition, as the potential benefit from the insurance, i.e. the payout in case of a bad harvest, lies in the future, its value is mentally discounted. This potential money in the future seems worth less than the price it would cost today. The farmer decides that it is therefore not worth the investment. 

 Timing of payment of insurance premiums is key. Usually, crop insurances have to be paid at the beginning of the season, just as the farmers need money for inputs, seeds, machinery and to feed their family until harvest, when they can sell their produce. 

 The researchers made a very simple change to the insurance policy: they shifted the payment date for the insurance to harvest time. 

In case of a good harvest, the farmer received the price for his harvest from which the insurance premium was deducted. In case of a bad harvest, the farmer received a price for his harvest and an insurance payout. 

 The researchers tested this innovation though a randomized controlled trial. "By simply moving the payment date to harvest time, we increased the pick-up rate for the insurance from 5% to 72%," says Lorenzo Casaburi and adds, "what's more, it was the poorest farmers that increased their demand the most."INSURANCE

Oil And Farming A Boon For Insurers.

Oil And Farming A Boon For Insurers. John D. Rockefeller said the secret of success is to “get up early, work late and strike oil.” Uganda has struck oil; around 6.5 billion barrels are scheduled for commercial production in 2020. This drive towards production, which government estimates will attract investment of up to $8 billion, has raised the prospect of increased demand for auxiliary services, including insurance. Insurers needed to work closer with farmers to understand different crop varieties and planting windows in order to reduce commercial premium rates. Corn is covered as high as 23.9% versus a 10% average affordable to farmers, more

Pet insurance : When is it a good time to buy pet health insurance?.

When is it a good time to buy pet health insurance?. As with anything you own and want to protect, the time to buy insurance is when you do not need it. Pets are part of our family, but we also own them. We plan to have enough money to cover their feeding, housing, and entertainment needs. 

 We also plan for routine medical care and wellness needs such as for vaccinations and parasite preventatives. It is the unexpected need for medical care that catches people unprepared. For some owners, having an insurance policy for their pet could make the difference between getting the needed medical care done or having to choose from another, less favorable option. Pet health insurance needs to be purchased ahead of need and before your pet develops any lifelong conditions that would be considered pre-existing and not covered.

Veterinary staff like to discuss pet health insurance with owners of puppies and kittens as enrolling them at such a young age means they have not had time to develop lifelong conditions. Allergies, chronic ear conditions, arthritis, and inflammatory bowel disease are just some of the chronic illnesses that take time to develop. Also, puppies and kittens tend to get into mischief and injure themselves. Puppies tend to explore their world via their mouth and swallow many things they should not such as socks and plastic items. 

Kittens sometimes swallow strings or other parts of fabrics. Surgeries to remove foreign objects would often be covered by insurance. Adult dogs and cats also can benefit from health insurance. As pets age, some will develop cancer. There are more options now than ever before in diagnosing it. Cancer treatments are also improved with targeted radiation therapies and chemotherapy. 

Veterinary bills for specialty cancer care can range easily from $5,000 to $10,000, and pet health insurance may pay for a significant chunk of it. Hip and knee problems tend to plague older dogs and high-energy, active dogs. They may need costly knee operations or hip replacement surgery. Multiple alternative and complementary therapies such as chiropractic care for animals, acupuncture, and therapeutic laser for chronic pain are available and covered by many insurance policies.

VETERINARY MEDICINE: Pet health insurance rising in popularity.

Pet health insurance rising in popularity. The 12-year-old was diagnosed with a tumor near her tail in August. Fortunately, Rita invested in pet insurance 8 years ago. "It is a relief it is an investment and a bit of a gamble as insurance usually is you could never see a return on it and for most insurance, you hope you don't," Orrell says. Insurance for dogs, cats and other pets is growing in popularity.

 Nearly 2 million pets were insured in 2016, up 15 percent from the prior year, but that's still just a fraction of the 144 million pets in America. Some Fortune 500 companies are now offering employees pet insurance as a work perk. "From their employee's point of view, pets have really become part of the family.

 Literally, over the last few years, pets have moved from the backyard to the bedroom," says Scott Liles, Vice President and Chief Pet Insurance Officer for Nationwide. If you have to buy a plan on your own it can cost more than $40 a month.

 They usually only cover accidents and illnesses, not wellness visits and vaccines. I understand that people may not be able to afford that," says Orrell. PetCure Oncologist Dr. Van Beven says insurance is vital when an animal is hit with a serious disease like cancer.

Culture, attitude hinder insurance role in economic development .

        Culture, attitude hinder insurance role in economic development.

Commissioner for Insurance,Mohammed Kari, in this discourse reiterates efforts the Commission has been making to kick-start the second phase of the MDRI In line with our strategic road-map, the Commission has set out reforms needed to re-position the Nigerian insurance sector to effectively serve our growing population and most importantly the financially under-serviced low-income segment. 

 Notwithstanding Nigeria’s vast population, insurance had a mixture of myth, misunderstanding and ignorance defining it. 

Cultural issues and attitudes have continued to hinder the role of insurance in fast-tracking Nigeria’s economic growth. In keying into the federal government’s Financial System Strategy that visioned Nigeria of being a world’s top twenty economy by the year 2020, (FSS2020 development framework), the Commission initiated the “Market Development and Restructuring Initiative” (MDRI) in 2009. 

  Insurance The programme has among its objectives, the promotion of public understanding of insurance; the building of confidence on the Nigerian insurance market, the enforcement and monitoring of compulsory insurances in Nigeria so as to grow premium income for the benefit of the Nigerian economy, thereby increasing insurance density and it’s contribution to GDP.

FOOD SECURITY :THE ROAD MAP.

What is food security? In lay terms,it refers to accessibility, availability ,affordability of nutritious food in quantities required ,when needed. The issue of food security is a global challenge with different countries facing different constraints.


The African countries are worst-hit "with 30% of the population severely and chronically undernourished"(Maputo declaration,July 2003).There is a need for Africa to utilize its full potential in agriculture by increasing food production through investment in livestock,aquaculture,crop farming and forestry.

   The Agricultural sector can be a major driver of economic growth,if all necessary support is provided for the growth and development.The support will include policies that are favorable,funding and education to encourage investors and urban farmers to increase and expand agricultural investments.

PETS,VETS AND PHONES.

The telecommunication era has made the world a global village. Every business can be reached on a telecommunication device and services also rendered with the aid of these gadgets.




Economic growth is hinged on the interrelationship of these industries with the telecommunication aspect.

The era of papers and pens has moved to clicks and dials,and all companies have apps that provide their services to customers.

Every segment of the economy has tapped into this growth even the agriculture and veterinary services are not left behind.

There is a new collaboration between pet owners,vets and dog food merchants . Telecommunication has bridged the divide;

CAT LOVERS.# WORLD CAT DAY!!!

POULTRY PIE!!!!

Which piece resonant with you??? Blue represents……production phase. These accounts for all poultry specie, feed, medication, cages, vaccines and drugs. Red represents….processing phase; these accounts for slaughtering, processing and packaging. These include all products from processing chicken. Green represents ……..marketing phase; accounts for all marketing routes, vehicles and channels of marketing. Purple represents…..distribution phase; to stores, cold rooms, food vendors and retailers. Which piece is yours??? Claim it now, and enjoy.

LIVESTOCK INSURANCE AND INDUSTRIALIZATION.

              LIVESTOCK INSURANCE AND INDUSTRIALIZATION.

  Agric insurance is important for the growth and development of the agricultural sector in any economy. The essence of agric insurance is to protect farmers from losses resulting from hazards such as accidents, death of livestock, condemnation of carcass, flood,fire,pest,disease and emergency control measures such as in case of outbreaks of African swine fever,bird flu e.t.c

 Agric insurance is also relevant in abattoir operations,with particular reference to condemnation of carcasses,organs in disease conditions and transportation accident.

 The benefits of insurance are enormous,aside the monetary compensation, there is access to professionals who over- see the project. Certified animals are procured to start the project,data of farmers collected..This  encourages proper record keeping and disease control measures.

 When animal husbandry projects are insured,there will be proper management ,food safety will be enhanced and wholesome products will be in our market.

The fear of running at a loss is the reason why producers cut corners, avoid the necessary management protocol such as vaccination,reporting outbreaks,processing dead animals. This results use of unconventional feeding practices and unauthorized drugs in production to attain market weight early.


The possibility of export will increase, if there is a structure that ensure compliance to international standards. This will ensure rapid industrialization in that sector which will promote economic growth.

The agric insurance sector though a growing industry,still has a lot to do to encourage farmers to insure their businesses. A large percentage of farmers dont access this opportunity , because of lack of proper knowledge of the policy.


This is to their detriment and to the loss of the economy on a larger scale.The farmers /producers need financial bodies to work with them,to give soft landing in case of loss and to pay commensurate compensations in cases of emergency control of diseases.

 The farmers cant access certain loans because they are not insured; premium are not fixed and certain diseases are not included in the policies.

LIVESTOCK INSURANCE AND COMPENSATION IN BEEF PROCESSING PLANT.

The business of slaughtering animals and processing in the abattoir is capital intensive and a very complicated venture because of the myriad of problems associated with it.

 The business ideally is a money spinner but there are so many choke points in this venture especially in developing countries.

The system in developed countries have been fine-tuned that its a win-win situation: the butchers are happy and the citizen have access to wholesome beef.

 The issue with the beef processing plant is basically compensation: either in form of insurance or payment when carcass is condemned by meat inspectors/vets and animal health officers.

The livestock insurance policy is a major key to revamping the beef processing industry.

 A butcher buys cattle, transports them to site of sale/ slaughter; some died in-transit, some in the market before sale and others after sale.

The cattle that makes it to the slaughter line upon examination has some diseased organs that need to be condemned,or has generalized TUBERCULOSIS; who bears these losses??? How will the butcher be sincere or follow the proper procedure?? your guess is as good as mine.

 The benefit of insurance in the agric sector is germane to economic growth and food safety. when the butchers are duly compensated for loss of animals and also for carcass in the abattoir from compensation schemes then food safety is ensured.

 The formulation of policies,laws, edits means nothing, when nobody bears the brunt.

FOOD FRAUD IN THE RED MEAT INDUSTRY.

Pictures above shows how #butchers cut corners, holes made in the carcass and filled with water to make up desired weight requested by customers. This practice is also done with the lungs, these are inflated and water is poured to increase the weight.

FOOD FRAUD IN BEEF PROCESSING PLANT.

Beef processing and handling is riddled with a lot of challenges, ranging from lack of insurance policy to lack of compensation to butchers who have their animals condemned.

The food industry has faced with a lot of challenges and all hands must be on deck to ensure that the proper protocols are enforced. The food fraud saga rocking some countries has resulted in several food recalls and a larger percentage of the populace are changing their dietary preferences. 

Sharp practices are employed by processors to ensure they make profit to the detriment of consumers. 

 Have you gone to the market to buy beef weighing a particular KG,but when you leave on kitchen unit you discover a reduction in size? or you cut up the beef and when its done you discover a dramatic reduction? well!!! welcome to food fraud arena. 

The carcass is usually punctured and water is poured in the carcass to increase the weight.When you ask processors to supply beef at a particular weight,they simply add water to make up for the short fall and break even. #change it # new paradigm # better processing # meat inspection laws.# new breed butchers.

BIRD FLU AND COMPENSATION.

The bird flu virus has left a devastating trail in many countries,with resultant huge economic losses and scarcity of poultry products especially eggs. The virus has put so many producers out of business and many more on the brink of financial collapse,the poultry farmers that are worst hit are those without insurance or any type of risk management plan and those that dont qualify for compensation. The risk management tool /insurance is a personal issue on the path of the farmers,many dont take out polices on their investment basically because they lack wisdom,and understanding on the issue.Any farmer that is insured has so many benefits,and links/opportunities to grow bigger. In cases of disease outbreaks, not only do they get pay-outs; they have opportunities to start over without any delay.Many insurance companies have products that cover farmers,their equipment and operation. Be a wise farmer, insure your farm. Compensation in cases of bird flu is a global concern,with more and more countries bring out guidelines on methods of collection and also many countries have made the compensation plan public to encourage farmers to disclose the status of their farms. In Nigeria,there is a compensation plan and guidelines to benefit from the scheme. A farmer that has an incidence on the farm and does not report cant lay claim to any payment. A farmer that has a case of high mortality ,with obvious signs of the bird flu virus and decides to procure a solution without reporting will forfeit any claim to any compensation on birds before the case became a public knowledge. When there is a case of bird flu on your farm, you report to a state veterinary officer,who will report to the state AVIAN INFLUENZA DESK OFFICER,and the farm is visited immediately,samples taken from farm and sent to the NVRI in Jos where a virus is confirmed. The population on the farm as at time of visit is recorded and sent along with sample,this is recorded in the compensation scheme form and its on this data that the payment is made. Early reporting is key to procure meaningful compensation. When the virus is confirmed,the farm is depopulated and disinfected.The process of disinfection is continuous,starting at every week,then followed by every month and the farm facility is not used for 6 months. A quarantine sign is put up on the farm to ensure there are no movement within 3km radius of the farm. Many potent disinfectants are available for this purpose,use proven disinfectants and wear protective clothing.