Insurer paid only K5,000 in claims

By GLORIA BAUAI
AGRI Assurance Limited has paid out just K5,000 in claims so far from losses encountered in its first two years of operation, an official says.
The amount was attributed to its small client base and the lack of activity over the last two years due to the Coronavirus (Covid-19) pandemic.
Executive director and chief executive officer Mark Baiai said the company was established in 2017 with assistance from the Morobe government.
He explained that this facility, a pilot project, stepped out of the traditional norm of insurance by introducing protection to the social sector and the majority of the uninsured rural population.
“We’re into the practice of social insurance where we look at risks outside of the main areas of risk covered by traditional insurance companies,” he said.
“Our company was incorporated and licensed to support social service delivery in micro-insurance sector where we look at supporting farmers and government services like health and education.”
Baiai said in recent developments, the threat of climate change had brought about a new perspective as to how insurance could assist in providing protection to vulnerable people and communities and their investments.
“We realise that we need to get something more suitable for our people without causing more strain on them so our products are tailored to grassroots,” he said.
“We insure coffee, cocoa, rubber, oil palm, vanilla, including livestock, food gardens and village houses.
“The Coronavirus slowed our progress but our policy is working and we are paying out; our client base is slowly growing and we’d like to reach more people with our services.”