Challenges and Prospects of Agricultural Insurance Market Development in Achieving Sustainable Development Goal (SDG) 8 In Nigeria.

Abstract

Agricultural insurance is a well-established and effective tool for increasing farmers’ resilience in the face of various production risks. The objective of the study was to evaluate the challenges and prospects of agricultural insurance market development in achieving sustainable development goal (SDG) 8 in Nigeria. Qualitative and conceptual methods of data analysis were employed to achieve the objectives of the study. The empirical data reveals that agricultural insurance market development is not in a progressive trend as it experiences to rise and fall in the percentage of its premium income, claims and underwriting income, total asset, total liability and reserve etc. Challenges facing agricultural insurance development include; moral and adverse selection, post-disaster relief, absence of infrastructure support, intensive data collection; demand constraints caused low incomes for the vast majority of the population etc. This paper concludes that agricultural insurance market in Nigeria has not been fully developed and therefore needs urgent attention to ensure full economic growth. It recommends among others that the agriculture insurance sector in Nigeria should adopt the new form of insurance, known as index-based insurance, to be in tune with international best practice and investments in data collection systems, and in science-based index development.