Rex Insurance Limited has partnered with the Nigerian Meteorological Agency (NiMet) to introduce weather-driven index insurance products aimed at shielding smallholder farmers from climate-related risks across Nigeria.

The initiative signals a strategic shift by Rex Insurance towards data-led underwriting, combining financial protection with real-time weather intelligence to support farm-level decision-making and reduce vulnerability to extreme weather events.

Under the partnership, Rex Insurance will deploy NiMet’s location-specific weather data to power its Weather and Hybrid Index Insurance solutions.

The products are designed to guide farmers on optimal planting periods, crop management, and efficient use of inputs such as seeds and fertiliser, while also enabling automatic payouts when predefined weather thresholds—such as drought, flooding, or erratic rainfall are breached.

Managing Director/Chief Executive Officer of Rex Insurance Limited, Ebelechukwu Nwachukwu, said the move reflects the company’s broader ambition to redefine agricultural insurance in Nigeria.

“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,” she said.

At the memorandum of understanding signing ceremony, Director-General/Chief Executive Officer of NiMet, Charles Anosike, underscored the growing impact of climate change on agriculture, noting that crops, livestock and rural livelihoods are increasingly exposed to unpredictable weather patterns.

He explained that weather index insurance relies on measurable meteorological data to trigger claims, adding that when combined with crop calendar forecasts, it enables farmers to make more informed planting and harvesting decisions.

Nwachukwu further noted that Rex Insurance, established in 1918 as Nigeria’s first insurance firm, is leveraging technology to deepen insurance penetration among rural farmers. She disclosed that the company would roll out the product through its distribution network, using extension agents equipped with mobile devices to deliver both insurance services and weather advisory directly to farming communities.

According to her, the approach is designed to overcome longstanding barriers to rural insurance access, particularly in remote areas where penetration has remained low.
She added that the introduction of weather-driven insurance is expected to enhance farmers’ resilience by helping them manage risks more proactively, amid rising frequency of extreme weather events that continue to affect yields, rural incomes, and food security.

The partners plan to pilot the integrated solution under the GIZ–EU VACE Programme, an initiative supported by the European Union and Germany’s Federal Ministry for Economic Cooperation and Development, and implemented by Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ) in collaboration with the Nigerian government.

The pilot will focus on demonstrating the effectiveness of the model and accelerating its adoption nationwide.

With the initiative, Rex Insurance said it is positioning itself at the forefront of agricultural insurance innovation, leveraging technology, data and partnerships to bridge the protection gap for underserved farmers in Nigeria.