A consortium of insurance companies led by Leadway Assurance Company Limited, in collaboration with Rex Insurance Limited, NSIA Insurance Limited, AIICO Insurance Plc, and the Nigerian Agricultural Insurance Corporation (NAIC), has disbursed N181,917,900 as insurance claims to livestock herders across Adamawa, Bauchi, and Plateau States under the Index-Based Livestock Insurance (IBLI) programme.
The claims payout ceremony, held recently in Yola, Adamawa State, marks a major milestone in the deployment of innovative, data-driven insurance solutions designed to protect pastoral livelihoods against climate-related risks.
Unlike conventional insurance, the IBLI programme relies on objective indices such as satellite-based vegetation data to trigger payouts. This ensures transparency, efficiency, and prompt compensation without the need for individual loss verification. The programme provides herders with timely financial relief, enabling them to purchase pasture for their livestock during periods of drought, ultimately protecting animals from mortality.
Leadway Assurance, serving as the Lead Technical Partner, provides expertise in product design, risk management, and implementation, working closely with its co-underwriters. The programme is further strengthened through partnerships with Africa Reinsurance Corporation (Africa Re), Livestock Productivity and Resilience Project (L-PRESS), and the International Finance Corporation (IFC), underscoring the critical role of regional and international collaboration in delivering innovative insurance solutions.
Speaking at the event, Mr. Ayoola Fatona, Global Head of Agriculture Risk Solutions at Leadway Assurance, said:
“The IBLI claims payout underscores our commitment to delivering innovative, data-driven insurance solutions that protect livestock-dependent livelihoods. Through strong collaboration with our co-underwriters, L-PRESS, IFC, and Africa Re as reinsurer, we are strengthening resilience among herders in Adamawa, Bauchi, and Plateau States while advancing sustainable agricultural risk management in Nigeria. By deploying this solution, the herders’ adaptability and coping mechanisms against climate change are further enhanced.”
The claims paid represent verified, index-triggered losses recorded during the insured period, demonstrating the effectiveness of the IBLI framework in responding to climate shocks affecting pastoral communities.
