Africa Reinsurance Corporation has launched a pioneering index-based livestock insurance (IBLI) and livestock risk management pilot programme in Nigeria.
The reinsurer said in a statement that it is collaborating with the Livestock Productivity and Resilience Support Project (L-PRES) and a consortium of insurance providers and development partners in the programme. The World Bank is a partner of L-PRES with the Nigerian Federal Ministry of Agriculture, Food and Security.
The launch event was held in Abuja in July 2025 and was attended by key stakeholders from government, the insurance sector, development institutions, and pastoralist communities.
The Africa Re statement said, “This innovative insurance product is designed to protect pastoralists and livestock farmers from the financial impact of droughts and pasture degradation, using satellite data to monitor vegetation conditions and trigger timely payouts.
“Through this parametric approach, the programme promotes transparency, efficiency, and increased trust in insurance as a risk mitigation tool. The pilot phase will run from 15 August 2025 to 30 March 2026, targeting 20,000 livestock farmers across Sokoto, Bauchi, Adamawa, and Plateau States.”
Participating insurers include REX Insurance, Leadway, AIICO, NAIC, and NSIA Insurance, with technical advisory provided by Dalili Advisors.