New Agriculture Insurance Launched in Botswana

January 22 - As Botswana's agriculture sector moves towards full commercialization, a new insurance product has been launched that should provide better cover overall to the industry.

A joint venture between South Africa's Famers Technical Insurance Services Company (FTISC) and Alexander Forbes Botswana has seen the launch of Agrinsure Botswana.

The idea to launch this product has been considered for a number of years and all interested parties believe that the move will allow the country to move towards food sustainability.

The coordinator of the Agriculture Hub, Neil Fitt said: "In the past we have only had schemes that were put in place by government and in as much as they were helpful to the farmers, they had their own limitations as they were national programs."

"With the introduction of Agrinsure," continued Fitt, "we will now have products that are farm and individual specific. This will go a long way in assisting farmers that were in need of such products as we know that banks here are not that excited about the farming business."

The government will not be involved in the latest venture, which has been created purely for commercial aims.

The company is expected to receive all the appropriate licensing in the near future.

With regards to finding underwriters to insure the new venture, the Chief Executive Officer of Agrinsure, David Garden said: "We are hoping a few financial institutions will come on board but some of the business will have to be taken aboard."

"Alexander Forbes will have the task of looking for the underwriters but this is still a new product in a relatively small market and I believe we are going to have to take a significant amount of the business outside the country," he added.