Experts Identify Affordability, Trust Deficit as Reason Why Small Holder Farmers Shun Insurance

Ebere Nwoji

Insurance experts have highlighted affordability and trust deficit as two key barriers to insurance adoption among smallholder farmers. 

The experts identified these at the 9^th edition of Agriculture Summit Africa (ASA) 2026. 

Speaking during  a panel session   titled, “Climate Risk Management for Sustainability: Future-Proofing Africa’s Food System,” Global Head, Agricultural Risk Solutions, Leadway Assurance,  Ayoola Fatona noted that against this backdrop, Leadway    often sought to address these challenges by building partnerships with organisations that share its  commitment to advancing the livelihoods of smallholder farmers and strengthening their resilience to climate-related risks. 

He said through  these collaborations,  the underwriting firm has  been able to mobilise funding to pre-finance insurance premiums, ensuring that farmers have the protection they needed in place from the onset of the planting season, when their risk exposure was  at its highest.”

The summit convened by Sterling Bank,  focused on improving food production, financing, processing, technology, trade, and policies to help Africa build stronger value chains, create jobs, strengthen intra-African trade, and become a stronger global food power. 

Leadway said these objectives align with its  commitment to strengthening the agricultural sector by providing risk protection for farmers, agribusinesses, and investments across the agricultural value chain.

Fatona, said in 2025  wet season alone, Leadway partnerships enabled it  to mobilise over $1.2 million to provide insurance coverage for more than 400,000 farmers.

He said the underwriting firm would continue  to build on that progress.