Rex Insurance Limited is making a significant push into climate-smart agriculture through a strategic partnership with the Nigerian Meteorological Agency (NiMet). This collaboration introduces weather-driven index insurance solutions designed to shield smallholder farmers in Nigeria from escalating climate risks.

This initiative represents a crucial step in Rex Insurance's transformation into a data-led insurer. The company will combine financial protection with real-time weather intelligence, empowering farmers to make quicker, more informed decisions.

Rex Insurance will utilize NiMet’s location-specific weather data within its Weather and Hybrid Index Insurance products. This data will guide farmers on optimal planting times, crop management strategies, and the effective use of farm supplies like seeds and fertilizer. Crucially, it will also automatically trigger payouts when extreme weather events such as drought, flooding, or irregular rainfall occur.

This approach aims to help farmers plan more effectively and reduce losses, rather than relying solely on compensation after damage has occurred. Ebelechukwu Nwachukwu, managing director/CEO of Rex Insurance Limited, stated, “Our strategy is to redefine what insurance means for the agricultural sector. By combining insurance with actionable weather intelligence, we are giving farmers the tools to plan, adapt, and protect their livelihoods in the face of increasing climate uncertainty.”

Professor Charles Anosike, director-general/CEO of NiMet, highlighted the agency's 100-year history in weather observation. He emphasized that climate change poses an increasing threat to crops, livestock, and rural communities. He noted that weather index insurance uses measurable weather data to trigger payouts and, combined with crop calendar forecasts, assists farmers in making smarter planting and harvesting decisions.

Nwachukwu added that Rex Insurance, founded in 1918 as Nigeria’s first insurance firm, is employing technology to enhance planning for smallholder farmers. She announced that index-based insurance for farmers is set to become a reality in Nigeria soon.

Rex Insurance plans to deploy the solution through its distribution network, utilizing extension agents equipped with mobile devices. These agents will deliver both insurance coverage and weather guidance directly to farming communities, aiming to improve access to services in remote areas and overcome historical challenges with rural insurance penetration.

Nwachukwu further stated, “The introduction of weather-driven insurance will help farmers manage risks and protect their livelihoods as the agricultural sector in Nigeria remains highly exposed to climate variations, with increasing frequency of extreme weather events impacting yields, rural incomes, and food security.”

Rex Insurance and NiMet will pilot this integrated solution under the GIZ–EU-funded VACE Programme. The focus will be on demonstrating its impact and accelerating nationwide adoption.

The EU-VACE TARED (Agriculture Value Chain Facility – Transformative Agricultural Systems for Rural Economic Development) project is funded by the European Union and the German Federal Ministry for Economic Cooperation and Development (BMZ). It is implemented by the Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ) in partnership with the Nigerian government. This move reinforces Rex Insurance's position at the forefront of agricultural insurance innovation in Nigeria, aligning technology, data, and partnerships to address the protection gap for underserved farmers.