Insurance Companies Urged to Invest in Agricultural Insurance

Insurance companies in the Angolan market need to identify the best mechanisms to develop and disseminate agricultural insurance throughout the country to increase production and strengthen food security, the Finance Minister Vera de Daves de Sousa said Tuesday in Luanda.

Speaking at the presentation ceremony of the results of study on the national insurance market carried out by international consultancy Enrst Young (EY), in partnership with the Angolan Insurance Regulation and Supervision Agency (ARSEG), the minister said agriculture is the sector of economic activity that plays a fundamental role in the process of any economy.

The minister added that agricultural insurance can contribute on a large scale to the security of agricultural investments, both for farmers and for financial institutions.

According to Vera Daves, increasing national production and economic diversification are among the main objectives of the Angolan government, which is focused on safeguarding national food security.

In July 2023, the minister said, the Angolan government signed a technical assistance agreement with the International Finance Corporation (IFC) to support ARSEG and the insurance companies in implementing Agricultural Insurance in Angola.

According to the minister, the process should be based on climate indices that are suitable for agricultural producers and thus protect national production.

The sector's contribution to the Gross Domestic Product (GDP) totals less than one percent, the minister said.

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