Why insurance brokers must speak the ‘language of the farmer’

Insurance brokers need to speak the language farmers understand in order to have more food producers sign up for insurance. While there is a great need for farmers to have insurance, experts said it is something farmers do not really prioritise, even in the midst of climate change challenges.

At the recent Food For Mzansi Young Farmers Indaba, a panel discussion on agricultural insurance, facilitated by Lerato Matheka, co-owner and managing editor of Newsday Media in Lesotho, unpacked what farmers really need.

Chief executive officer of AgriCulture Gauteng, Dr Dalene Louw, said it is critically important for farmers to have insurance; however, the reality is that farmers cannot afford it.

“I think it is important to raise an issue that while insurance is expensive, farmers must not only look out for themselves but look at the broader picture because reality is that climate change is here. We need farmers to be insured because, without having farmers insured, our food system will collapse.

“And we know that for young farmers, insurance is the last thing on their mind. However, we need to say to the government, you must lead by example. If you give a farmer a tractor as an example, that tractor needs to be insured. In that it teaches farmers that insurance is a key element of farming operations,” Louw said.

Education and awareness are key

Louw emphasised that insurance brokers need to sell insurance with African challenges in mind, and not Westernise it.

“It is high time that we find African solutions to African problems, let us speak to farmers and hear what they need. Also, farmers need to come to the party. Today you get good yields, tomorrow fire or hail comes – all that is gone. Let’s encourage farmers to get insurance,” she said.

Eloff van der Spuy, broker development manager at Santam Broker Solutions, said farmers need to have brokers as they understand the needs of farmers much better.

“It is advisable that farmers have a broker, because brokers work with agricultural experts and put what farmers need at heart. They also make decisions based on trends and importantly to note, we fight for the farmer because we know what they need and how they need it,” he said.

Lefa Ndlovu, executive manager of sales at Land Bank, said public-private partnerships are important in raising awareness of insurance for farmers, as this not only helps insurance institutions but increase education.

“It will be through such partnerships that we will be able to deal with myths and misinformation, such as insurance companies not responding on time, because responding also differs.

“What is important to understand is that an assessment needs to be done and can only be done through visits to the farms and other means. So yes, insurance companies respond fast,” Ndlovu said.

Benefits of insurance

The panel noted that farming needs to be regarded as a business, and insurance as a key to operating the business because farmers in South Africa face unpredictable risks such as droughts, floods, pests, and market fluctuations.

They highlighted the importance of insurance in protecting their investments, ensuring farmers can recover from losses and continue operating. It also improves access to finance, as lenders are more willing to support insured businesses.

For young farmers building their livelihoods, insurance provides stability, encourages growth, and safeguards their future in an increasingly uncertain agricultural environment.