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Underwriters caution Nigerians against agrictech crowdfunding

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Insurance operators have warned Nigerians to avoid traps in the name of agriculture crowdfunding platforms offering unrealistic returns on investment.

Executive Director, Leadway Assurance Company Limited, Ms. Adetola Adegbayi, gave this warning at a virtual Media Roundtable organised by the company in Lagos. She said the concern of insurance companies over agriculture investment crowdfunding was to insure the farm assets and not the entire money crowd funded.

She said crowd funding firms do promise investors unreasonable returns on their contributions.

Because of the promise of higher returns on investment, she said, the public invest their hard-earned money into the ventures without asking questions. She added: “But when they are faced with a loss, they begin to look at insurance companies to compensate them.”She said insurance companies do not insure the total money crowd funded but only the portion invested in agriculture projects.

“The total money crowd funded is a speculative risk, insurance companies don’t insure that and so, no insurance firms would be held responsible for a loss that occurred on the entire fund. Underwriters only insure risks emanating from the agriculture projects,” she pointed out.

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