Relief for farmers: QIC launches weather index insurance product

Quality Insurance Company (QIC) has launched new weather index insurance product  to provide farmers with a safety net against the growing threat of unpredictable weather events. 

The new wproduct, the first of its kind on the market, offers quick financial relief to farmers affected by two major weather risks such as drought and excess rainfall. 

It means that farmers whose areas experience drought or heavy rainfall, will receive automatic payouts based on objective weather data from local meteorological stations.

The product also offers a straightforward payout structure, with farmers able to receive compensation based on the severity of the weather event. 

In the event of a covered weather occurrence, farmers are guaranteed a minimum payout of 50%, with a potential maximum payout of 100%, covering the full loss.

Immediate past Dean of the School of Agriculture, University of Ghana, Prof. Irene Susana Egyir, who launched the new product in Accra, commended QIC for being the first insurance company to introduce such an initiative in Ghana. 

She encouraged all crop farmers to take advantage of this new insurance product, which can provide them with an additional income source particularly in times of the natural occurences as stipulated, which they have no control over.

"This is an excellent initiative, and I encourage every farmer to participate to ensure its success. They are beginning with weather coverage, and later, they plan to include livestock, making it a comprehensive agricultural insurance. This will be a great benefit for us crop farmers, providing us with a reliable income to support the work we do and sustain our livelihoods."

Resilience in agriculture

A farmer from North East Region, Fentuo Tahiru, also supported the claim that Ghana's agricultural sector is highly vulnerable to climate change, with many farmers 
practicing on rain-fed agriculture. 

He described the weather index insurance product as a timely solution to help farmers recover quickly from the negative effects of climate change, which has created increasingly erratic weather patterns in recent years.

“The speed and simplicity of this insurance mean that I can get back to work quickly after a disaster. In the past, I had to wait for months before receiving help. 
Now, I will get the support I need in just a few days.”

While insurance for agricultural risks has existed in Ghana, weather index insurance is a relatively new concept. 

Mr Tahiru said unlike traditional crop insurance, which requires on-site damage assessments, this model is based on weather data and is designed to be faster and more efficient. 

The product, he added, eliminates the need for time consuming claims processes, offering a more accessible and reliable solution for farmers who often struggle to navigate bureaucratic hurdles.