BY SALIM KALANZI
Insurers generated at least 11.4 billion in gross written premiums from the agriculture sector for the twelve months to December 2020.
Insurance premium is an amount paid periodically to the insurer by the insured in for covering his risk. According to the industry report from Insurance Regulatory Authority (IRA) a total of 54,287 farmers were covered during the period.
However, there was a significant decline in the number of farmers covered and the premiums generated in comparison to the period before. In 2019, 81,794 farmers were covered and a total of sh13 billion was generated in premiums.
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Ibrahim Kaddunabbi Lubega, the chief executive officer at IRA noted that: “The reduction in the numbers are mainly due to the slowed activity as a result of Covid 19. Despite the reduction in business volume, total claims paid increased from sh1.846b in 2019 to sh4.116billi in 2020.”
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