The National Insurance Commission (NAICOM) has given approval to AIICO Insurance Plc to underwrite agriculture insurance. AIICO’s approval is coming barely a week after Linkage Assurance Plc got the NAICOM’s approval to underwrite same.
In a statement released, AIICO Insurance revealed that the approval was in response to the dire need to adequately protect investments in the agricultural sector.
AIICO Insurance’s Managing Director and Chief Executive Officer, Edwin Igbiti was said
“Having recently obtained approval as an agriculture underwriter, AIICO Insurance is uniquely positioned to offer agriculture insurance to Nigerian farmers at all levels, as well as investors looking to tap into the huge potentials of the sector, through its value-based insurance propositions. The company’s competitive edge is hinged on its understanding of the exact needs of farmers through the application of knowledge and expertise in this line of insurance business.’’
How this can benefit farmers
Nigeria’s agribusiness sector needs insurance to remain sustainable and achieve long-term growth expectation; stakeholders in the agricultural value chain need to embrace insurance by reducing retained risk and transferring the burden to insurers for effective risk management.
NAICOM’s approval will allow AIICO Insurance Plc to support farmers and service providers in the agricultural value chain for greater sustainability and economic growth.
AIICO commenced operations in Nigeria in 1963 as an Agency office of American Life Insurance Company (“ALICO”) – at the time, a subsidiary of American International Group (“AIG”).
The Company was incorporated, registered and licensed in Nigeria as American Life Insurance Company Limited – as a wholly owned subsidiary of ALICO/AIG in 1970 to offer Life and Pension products and insurance services.
The Company was renamed American International Insurance Company Limited (“AIICO”) upon the acquisition of a 60% stake by the Federal Government of Nigeria and later listed on the Nigerian Stock Exchange in 1990, after which both shareholders – the Federal Government of Nigeria and AIG divested. Its key business lines include life assurance and annuity, general insurance and special risks, pension management, health insurance, and asset management.