ICZ urges insurers to scale-up livestock products

LIVINGSTONE MARUFU

Zimbabwe’s  insurance companies should scale-up insurance products  to protect livestock farmers from  theileriosis also known as January Disease and natural disasters related losses, the Insurance Council of Zimbabwe (ICZ)  has said.

Zimbabwe is regularly hit by  January disease. The high livestock mortality rate has devastating effects, rendering the farmers vulnerable.

But, uptake of livestock insurance is currently low  in Zimbabwe.

ICZ head of operations, Nicholas Sayi, told Business Times that it was critical that  insurers and farmers come together  to avoid  losses of cattle.

His remarks come at a time when cattle ranchers continue to lose a number of cattle to deadly diseases, lightning, rolling stones, wild animal attacks and snake bites. According to official data  obtained from the Ministry of Lands, Agriculture, Fisheries, Water and Rural Resettlement, more than 30000 cattle died of diseases and natural disasters between 2019 and 2021.

“Insurance that covers cattle or livestock is on the lower side but given the high mortality rate due to theileriosis, anthrax, foot and mouth and other disasters there is a huge need for an insurance cover more than ever,” Sayi said.

He added: “It is a two way thing where farmers can preserve their wealth through policies that cover the aforementioned disasters while insurers get business from ranchers.”

First Sun Alliance agriculture business executive Moses Chourombo there is insurance cover for accidental electrocution, illness and diseases (including epidemics, January disease,  anthrax, Foot  and  Mouth Disease), theft (subject to provision of police report), flooding, earthquake and storm damage.

He said the comprehensive cover also looks at emergency slaughter on grounds of necessity, due to the above and on the advice of a qualified veterinarian, calving losses, non-political riot, strike and malicious injury, attack by wild animals and dogs and impact by road vehicles or rolling stones.

Another risk expert, Edson Magaisa who works with Minerva Risk Advisors, said: “We are trying to come up with various options to make the product more economical to farmers, for example farmers with large herds can now selectively insure their critical animals.”

He added: “The forming of groups in various communities can motivate group schemes to come together  and  make insurance cheaper and affordable if there is a group scheme.”

Magaisa said accessibility to tertiary services is also key when it comes to the health of the animal as well as when claiming from an insurance policy.

He said  his company was  in the process of engaging all off takers and having virtual meetings to find out what farmers expect from a livestock insurance product.

The insurance firm will evaluate the value of each animal, total number of animals to be covered, physical address of the farm and look into the use of the cattle if it is beef or dairy for a rancher to be insured.

In the past year, January disease accounted for more than 60% of all the cases and cattle deaths due to tick borne diseases.

Presently, Masvingo and Midlands provinces have been affected by tick borne diseases, with Shurugwi, Chirumhanzu, Gweru, Gutu and Zaka being the worst affected.