The Malawi Oilseeds Sector Transformation (Most) has said it will continue working with insurance companies to provide insurance products for farmers in the oil seed sector, particularly in rural areas.
Most is a four-year K5 billion market systems initiative funded by UK Department for International Development (DfID), which aims to increase incomes of women and men working in Malawi’s cotton, groundnut, soybean and sunflower markets.
Speaking in Lilongwe on Tuesday, Most business development and access to finance adviser Joseph Saiti said the response from both farmers and insurance firms has been overwhelming.
He said: “Insurance companies have embraced the development and have managed to reach out to the previously unserved market and do their part in financial inclusion. So far, the programme has over 5 000 farmers in the pilot”.
Smile Life Insurance chief operating officer Beatrice Mangwana said the programme has made it easy for the companies to sell out insurance to the rural masses.
She said there is an indication that more farmers will access the products.
Currently, the programme has initiated two insurance packages—a weather index input insurance and funeral expenses insurance—being offered by Smile Life Insurance, United General Insurance and Nico General Insurance.
According to Most, the sum insured for life insurance is K75 000 with a premium of K250 a month for six months.
Most seeks to have a transformation impact by supporting changes in the market system that fundamentally alter the way business is done to ensure greater benefits for the poor.
The programme also works with a range of market actors from small-scale rural entrepreneurs to multinational companies-to pilot and scale up new business models and to stimulate a more competitive market system.