Morocco is currently in the process of finalising the design of a new agricultural insurance model which focuses on index or parametric cover.
The product will have to be tested this year before it is considered for commercialisation, reported La Vie Eco.
The Agricultural Development Agency, in partnership with the French Development Agency (AFD) and the French Fund for the Global Environment (FFEM), is developing the project.
The scheme limits management expenses and improves the evaluation of losses. It is a solution that will rapidly improve with the digital revolution.
Meanwhile, volatility in agricultural yields is increasingly pushing farmers to purchase agricultural insurance, which has expanded four-fold since 2010.
In addition, farm insurance has become more accessible through state intervention, which encourages farmers to take up agricultural insurance.
Currently, agriculture insurance is available through two products offered by the Moroccan Insurance Mutual Company (MAMDA), a partner of the Green Morocco Plan.
In the meantime, it is necessary to strengthen the awareness of risk and insurance. The reality of climate change and its translation in terms of risks must be explained to farmers to encourage them to anticipate and adjust their practices.
MAMDA also operates elsewhere in Africa. In 2014, MAMDA, in partnership with PartnerRe, the world leader in agricultural reinsurance, and the Central Reinsurance Mutual, created MAMDA Re – a reinsurer dedicated to Africa and specialising in covering agricultural risks. The aim is to help African countries develop their agriculture and promote their economic transformation by taking advantage of their abundant natural resources and changes in production processes.
The Green Morocco Plan, launched in 2008, has two pillars: the accelerated development of a modern and competitive agriculture in Morocco through the realisation of 1,000 new projects with high added value in both productions and agro-food, as well as support for smallholder farming in difficult rural areas. M