TETRAD Holdings insurance arm, THI Insurance, plans to introduce new insurance products to the agriculture sector soon in a bid to explore opportunities in the niche market, the company’s non-executive director David Birch has said.

Business Reporter

Addressing delegates at the company’s 75th celebration on Tuesday, Birch said the insurance company would focus on upstream and downstream elements of the agro-industry as it plays a vital role in the economy.

“We are seeing opportunities in the agricultural and crop insurance sector from our immediate neighbours Zambia, Malawi, Mozambique — which is uncertain — but it’s a market we will look at probably, Uganda and Tanzania — where there is very intense agriculture. We believe our knowledge in crop insurance will give us something to offer. We wish to be a niche market. We want to be different,” Birch said.

“In short, we want you to see us as a well-capitalised niche operator rather than just another insurer following that well-trodden path of pursuing the same old business that some of the other 23 short-term insurance licence holders are doing, usually by price-slashing rather than technical or product innovation.”

He, however, could not give the budget for the new plans as they were still at a preliminary stages.

Birch said they will develop short-term insurance business through creating partnerships with some members of the broking sector.

“This will enable and encourage us to provide you with an exceptional service level with a philosophy that leans towards the ‘can do’ rather than the often repeated excuse — our treaties don’t allow it — or just blind underwriting that can end in disaster.”

THI Insurance offers cover to farmers for major damage to crops and the level of cover are reviewed annually.

Meanwhile, profitability for the country’s short-term insurers, according to the Insurance and Pension Commission, slid 5,12% for the period ending September 30, 2012, despite growth in business written.