On August 21, 2012, Ben Kajwang, CEO of the Kenyan College of Insurance launched a regional certificate program in agricultural insurance in order to create mechanisms that would help Rwanda have professional farmers.
The week-long scheduled program will enhance the levels of awareness and penetration of agricultural insurance in the region, especially to the rural households.
According to Kajwang, central bank official insured they are working on rules and regulations which include setting the deadline for a company to pay their client on due time. However, the way an insurance company would deal with their clients is on schedule in this program.
Adding that the college will insure objectives of teaching participants the historical development of agricultural insurance are achieved, the risks associated with it and the roles various agencies play.
Participants will also learn underwriting of crop insurance and claims procedures of agriculture insurance.
“The training is highly welcome in Rwanda. We have already auto insurance, house insurance, other commercial products insurance, but we had not agricultural insurance — a sector upon many lives depend on, a sector that has many risks,” said Bonaventure Kagaba Sangano, the in-charge of Insurance Operations at National Bank of Rwanda.
The risks, are related to insects that destroy crops, the weather that none can master where there might come a lot of rain or sun followed by a big loss to farmers.
There is a partnership with local and international insurance companies, which can help Rwandan companies to afford even sectors with risky insurance.
Sangano said it is feasible, since already local farmers are used to forming professional cooperatives which focus on intensification of one crop. Now for them, it is timely to have an insurance of crops, benefic for them and for the country that needs to insure sustainable food security to its citizens.
“Commenting on the reason why in Rwanda there is no insurance company covering agricultural insurance,” said Sangano.
“Sonarwa aimed at introducing it in 1990s, but it wasn’t sustainable; in fact it is a risk sector where insurance companies hesitate to invest their money.”
Clients of insurance companies have always claimed that companies complicate processes to get them paid, assumingly because they mostly look at their own interests and ignore their clients’.
In that way, a farmer who would not have enough time to run after a company would be victim of these delays.
The program will also be rolled in all EAC and COMESA region. The report shows that penetration in Rwanda is still at 2.3% while the target is to have it at 10% in 2017.