LAHORE: The Area Yield Index Insurance (AYII) Payout Ceremony, a momentous event celebrating the approval and disbursement of successful claims, took centre stage in Lahore on December 8, 2023.
The ceremony not only commemorated claims payments but also emphasised the critical collaboration needed between the financial sector and agricultural stakeholders in driving resilience and sustainability in Agriculture sector of Pakistan.
Distinguished participants at the ceremony included Zafar Masud, President & CEO of The Bank of Punjab; Elise Lee, Commercial Manager Africa & Asia fromPULA, an International company founded in Mollis Switzerland, Arif Nadeem, CEO of Pakistan Agriculture Coalition and Aminuddin, CEO of TPL Insurance Pakistan.
Masud emphasized the significance of the Area Yield Index Insurance in Pakistan. He underscored the need of public-private partnerships and the role of Federal and Provincial Governments in advancing this concept.
He highlighted that The BoP continues to lead initiatives that empower farmers for a secure and prosperous future. The Bank played an active role in the successful payout of area yield insurance claims, demonstrating its dedication to supporting innovative solutions for the agriculture related challenges being faced by the country’s farming community.
This commitment was realized through collaboration with local and international insurance partners. The pilot for the Area Yield Index Insurance was executed in Pakpattan District, focusing on wheat and rice crops.
Notably, TPL and PULA approved a substantial claim benefiting affected farming customers of the area. Masud added that the AYII can address to the specific needs of the farming community in this era of climate change and low per-acre productivity.
Lee elaborated on the significance of the Area Yield Index as a globally practiced method to protect farmers against low yields, providing insurance against a pre-set historical benchmark. “This insurance offers protection against all natural catastrophes and biological perils that could influence the reduction of crop yields without the requisite requirement of declaration of calamity by the Government.”
Aminuddin showcased the efficacy of the area yield in accurately determining crop yields, facilitating prompt and fair insurance payouts for farmers in times of need. He shared insights into the inception and development of the innovative insurance model, emphasizing the transformative impact it had had on the agricultural landscape.
The event was attended by the participants from senior management of BOP, Mainstream Media, and the farming community from the affected areas of Pakpattan.
Copyright Business Recorder, 2023