A special committee is studying the economic feasibility of agriculture insurance in Oman, including requirements of insurers, mechanisms for coverage, and the provision of coverage for owners of agricultural projects.
The panel will also recommend alternatives to protect farmers and fishermen from natural catastrophes and plant diseases, reported Muscat Daily, citing an official statement.
The commission is expected to complete its report in the first quarter of this year, after which it will discuss the details with the Omani Agricultural Association and obtain feedback before submitting the report to the authorities.
The panel was formed following recommendations made at a seminar on agricultural insurance organised by the Capital Market Authority (CMA) in the first half of 2016, which was also attended by representatives of the Ministry of Agriculture and Fisheries and the Oman Chamber for Commerce and Industry (OCCI).
The committee is chaired by the CMA and comprises representatives from the Ministry of Agriculture, the OCCI, Oman Reinsurance and other insurers.
The team has so far held four meetings, the most recent of which was in early January, during which the types of insurance coverage needed for agricultural activities in Oman were discussed.
Although the idea of agriculture insurance is new to Oman, the committee learnt from the experience of other countries about the mechanisms of such insurance and the challenges faced in determining and implementing the various types of agriculture insurance products.
The team has obtained data and information required to prepare a detailed study on agriculture insurance, including types of coverage, expected premiums, settlement methods and payment of claims.
The work included suggesting ideas and work plans to educate farmers to improve their management and financial performance. The Ministry of Agriculture will prepare a plan to prepare and urge farmers to accept and adopt agriculture insurance.