by Linda Straker
- Hurricane season officially commences on 1 June
- Agri-insurance initiative would be piloted in the nutmeg and cocoa subsectors
- Agriculture Risk Insurance product implemented with support from FAO
Agriculture Minister Peter David has disclosed that after much discussion, the agri-insurance initiative for farmers would be piloted in the nutmeg and cocoa subsectors, as they are the most organised and relevant data required was available for them.
“So far, we have completed the insurance product design (hybrid product incorporating parametric and indemnity insurance) which covers losses associated with the wind. We have completed modelling of wind speed component and risk analysis. We have selected insurance brokers (Willis Tower Watson) to approach the reinsurance market in search of the optimal price,” David said while addressing the 37th Conference of the United Nations Food and Agriculture Organisation (FAO) in Latin America and the Caribbean held in Ecuador earlier this week.
Minister David believes that implementing such a project is an innovative response to ensure that people enjoy a better life. The initiative, as he further explained, is important in helping farmers rebound faster and reduce the burden on governments to restore livelihoods after major weather events. It also serves as a catalyst for extending credit to farmers covered by insurance.
He said that the Government is cognisant of the important role that agriculture risk insurance coverage can play in making the sector more resilient. “Therefore, we are committed to bringing this project to fruition and recognise the need to have insurance coverage for the entire sector,” he said.
A news release from the Ministry of Agriculture said that it looks forward to the successful implementation of the Agriculture Risk Insurance product which is being implemented with support from the FAO.
“The Ministry considers the attainment of a functional Agriculture Risk Insurance product as significant towards building better livelihoods for sector stakeholders.” The release explained that the implementation of the project began in 2017 after the conclusion of preliminary research.
The Ministry of Agriculture is anticipating that the insurance product can be implemented fully before the start of the hurricane season in 2023 which officially commences on 1 June.
