Livestock herders in Adamawa, Bauchi and Plateau states have received a total of N181.9 million in insurance claims under the Index-Based Livestock Insurance (IBLI) scheme, marking a significant step in efforts to strengthen agricultural risk protection in Nigeria.

The payout, facilitated by a consortium of insurers, reflects losses triggered by pre-determined environmental conditions during the insured period. The underwriting group was led by Leadway Assurance Company, with participation from Rex Insurance, NSIA Insurance, AIICO Insurance and the Nigerian Agricultural Insurance Corporation.

Industry stakeholders say the disbursement demonstrates the increasing role of innovative insurance products in safeguarding pastoral livelihoods, particularly in the face of climate-related risks such as drought.

Unlike traditional insurance models that require physical verification of losses, the IBLI scheme uses satellite data to monitor vegetation levels and automatically trigger compensation once set thresholds are breached. This approach enables faster payouts and reduces administrative bottlenecks.

Insurers involved in the scheme noted that the use of parametric insurance solutions is becoming more relevant in addressing widespread climate risks across the agricultural sector, offering a more scalable and efficient alternative to conventional indemnity-based policies.

The programme also benefits from reinsurance backing provided by the Africa Reinsurance Corporation, alongside support from the Livestock Productivity and Resilience Support Project (L-PRESS) and the International Finance Corporation of the World Bank Group.

These partnerships highlight growing collaboration between insurers, development institutions and government-backed initiatives.

Speaking during the disbursement event in Yola, Adamawa State, Leadway’s Global Head of Agriculture Risk Solutions, Ayoola Fatona, said the payout underscores the effectiveness of data-driven insurance in improving resilience among livestock-dependent communities and advancing sustainable risk management practices.