Lagos: Rex Insurance Ltd. has partnered with the Nigerian Meteorological Agency (NiMet) to introduce weather index insurance designed to shield smallholder farmers from climate-related risks.
According to News Agency of Nigeria, the initiative combines insurance with real-time weather data to support climate-smart agriculture.
The company announced that this innovative approach aims to improve farmers’ decision-making and reduce losses caused by adverse weather conditions. During the signing of the Memorandum of Understanding (MoU), Ebelechukwu Nwachukwu, the Chief Executive Officer of Rex Insurance, highlighted that the partnership represents a shift towards data-driven agricultural insurance. The firm plans to leverage location-specific data from NiMet to develop weather and hybrid index products.
Nwachukwu stated that the solution would guide planting periods, crop management, and input usage, while also triggering automatic payouts during extreme weather events such as droughts, flooding, and irregular rainfall. ‘Our strategy is to redefine agricultural insurance by combining financial protection with actionable weather intelligence,’ she explained.
The company plans to deploy the solution through its distribution network, utilizing extension agents equipped with mobile devices to deliver insurance services and weather advisories, even in remote communities. Nwachukwu emphasized that the initiative aims to address low rural insurance penetration and strengthen farmers’ resilience to climate variability. ‘Weather-driven insurance will help farmers manage risks and protect livelihoods as extreme events increasingly affect yields, incomes, and food security,’ she noted.
Charles Anosike, the Chief Executive Officer of NiMet, stressed that climate change poses increasing threats to crops, livestock, and rural livelihoods. Anosike explained that weather index insurance uses measurable parameters to trigger claims and, when combined with crop calendars, supports informed planting and harvesting decisions. He added that NiMet’s expertise in weather observation would be crucial to the success of the initiative.
The partnership allows Rex Insurance and NiMet to pilot the solution under the GIZ-EU-funded VACE Programme, which aims to demonstrate impact and accelerate adoption. The EU-VACE TARED project, funded by the European Union and Germany’s development ministry, seeks to support the transformation of Nigeria’s agricultural sector. This initiative is implemented by the German development agency GIZ in collaboration with the Nigerian government.