Egypt: FRA approves country's first crop insurance policy
Source: Middle East Insurance Review | Jul 2018
The Financial Regulatory Authority (FRA) has approved an insurance policy for crops, which would be the first product of its kind in the country, said media reports.
A FRA source said the policy would provide compensation to farms or agricultural land reclamation companies, or the government represented in the lands owned by the Ministry of Agriculture, in the event of damage to crops caused by incidents such as floods.
Studies are currently underway to price the policy, reported Youm 7. The first step is to determine a fixed premium to be applied to all crops. The second step is to determine the premium according to certain conditions related to the quality of the crop, the nature of the agricultural land and other technical conditions, which is currently being studied by reinsurers.
Mr Hamdi Abdel Mawla, the insurance broker who submitted the agricultural crop insurance project to the Ministry of Agriculture in cooperation with an insurance company, said the proposed insurance coverage aims to protect state-owned agricultural lands, funds owned by agricultural reclamation companies and farmers’ funds. M