Rex Insurance has partnered with the Nigerian Meteorological Agency to introduce a weather index insurance product aimed at protecting smallholder farmers from climate-related risks.
The initiative, unveiled on Tuesday, is designed to support climate-smart agriculture by integrating insurance coverage with real-time weather data. The companies said the solution would enhance farmers’ decision-making while reducing losses caused by adverse weather conditions.
Speaking at the signing of the memorandum of understanding, Rex Insurance Chief Executive Officer, Ebelechukwu Nwachukwu, described the partnership as a significant step toward data-driven agricultural insurance.
She explained that the company would leverage NiMet’s location-specific weather data to power both weather index and hybrid insurance products. According to her, the system will guide farmers on optimal planting periods, crop management practices and input usage, while also enabling 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 said.
Nwachukwu added that the solution would be deployed through the company’s distribution network, including extension agents equipped with mobile devices to deliver insurance services and weather advisory support to farmers in remote communities.
She noted that the initiative would help address low insurance penetration in rural areas and strengthen farmers’ resilience to climate variability.
Also speaking, NiMet Director-General, Charles Anosike, warned that climate change continues to pose increasing threats to crops, livestock and rural livelihoods.
He explained that weather index insurance relies on measurable weather parameters to trigger claims, and when combined with crop calendars, can help farmers make more informed planting and harvesting decisions.
Anosike added that NiMet’s expertise in weather monitoring and forecasting would be critical to the success of the initiative.
Both organisations disclosed that the product would be piloted under the VACE Programme, funded by the European Union and Germany’s development ministry, and implemented by Deutsche Gesellschaft für Internationale Zusammenarbeit in partnership with the Nigerian government.
Rex Insurance said the initiative underscores its commitment to innovation in agricultural insurance, leveraging technology and strategic partnerships to close protection gaps and support underserved farming communities.
