IBLI Consortium pays N181.9m insurance claims to livestock herders

A consortium of insurance companies led by Leadway Assurance Company Limited, in collaboration with Rex Insurance Limited, NSIA Insurance Limited, AIICO Insurance Plc, and Nigerian Agricultural Insurance Corporation (NAIC), has disbursed a total sum of 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 in Yola, Adamawa State, marks a significant milestone in the use of innovative, data-driven insurance solutions to protect pastoral livelihoods against climate-related risks.

The IBLI programme is designed to provide timely financial relief to livestock owners affected by drought and other climate shocks and avails them with financial resources to purchase pasture for their animals whenever there is drought in the grazing area thereby protecting the animal from mortality.

Unlike conventional insurance, IBLI relies on objective indices such as satellite-based vegetation data to trigger payouts, ensuring transparency, efficiency, and prompt compensation without the need for individual loss verification.

Leadway Assurance serves as the Lead Technical Partner for the IBLI programme, providing technical leadership in product design, risk management, and implementation, while working closely with its co-underwriters. The programme is further strengthened through partnerships with Africa Reinsurance Corporation (Africa Re), the reinsurer of the project, Livestock Productivity and Resilience Project (L-PRESS), International Finance Corporation (IFC) a member of the World Bank Group, thereby underscoring the importance of regional and international partnerships in the development and deployment of this innovative and bespoke insurance solutions for the benefit of cattle herders in Nigeria.

Ayoola Fatona, global head, Agriculture Risk Solutions, Leadway Assurance, highlighted the importance of collaboration in delivering impact at scale: “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 Livestock farmers. By deploying this solution the herders adaptability and coping mechanism against the negative impact of climate change and global warming is further enhanced”

The claims paid represent verified index-triggered losses recorded during the insured period and demonstrate the effectiveness of the IBLI framework in responding to climate shocks affecting pastoral communities.

The IBLI consortium remains committed to expanding access to agricultural insurance through strong partnerships with reinsurers, governments, and development stakeholders, while promoting resilience, financial inclusion, and sustainable livelihoods within Nigeria’s livestock sector.

By this initiative, Leadway Assurance Company Limited has once again demonstrated its commitment to contributing to guaranteeing the food security of the Nation.

Modestus Anaesoronye is a leading Nigerian financial journalist with over two decades of experience reporting on the insurance and pension sectors across Nigeria and West Africa. He has held key editorial positions at major national media outlets, including The Comet, The Nation, and Financial Standard, and currently serves as a Senior Financial Analyst at BusinessDay Media Ltd.

A widely travelled reporter, he has covered industry developments in more than 14 countries across Africa and Asia.

Anaesoronye is a multiple award-winning journalist, honoured several times as Insurance Journalist of the Year and Pension Journalist of the Year by recognised industry bodies, including PensionScope and the Pension Fund Operators Association of Nigeria (PenOp), among others.

Join BusinessDay whatsapp Channel, to stay up to date