Sharp practices in agricultural insurance: Implications for food security in Nigeria

Agriculture as a business is confronted with many risks due to natural hazards such as drought, flood and windstorm as well as problems of pests and diseases. In order to pave ways for sustainable agriculture and selfsufficiency in food production, there is the need for tailored protection, hence the agricultural risk management component which is “insurance”. This paper examined insurance as a risk management option and also highlighted the sharp practices being played in agricultural insurance industry in Nigeria. The sharp practices denied genuine farmers who suffered great losses the opportunity of benefitting from the insurance claims that can bring them back to business. Measures to stem down the sharp practices such as the elimination or review of the roles of insurance agents and brokers were suggested. The paper advised that anti-corruption agencies in the country should beam their searchlights on the activities in the agricultural insurance industry with a view to curb the nefarious activities of both the clients and the operators.