Morocco: Farm insurance sees steady but slow progress
Source: Middle East Insurance Review | Jun 2015
The number of farmers covered by a multi-risk insurance scheme in Morocco is growing, with around 30,000 farmers belonging to the scheme, compared to 3,700 before the establishment of state guarantees in 2008.
The target is for the scheme to cover one million hectares by the end of this year. Presently, more than 70% of the goal has been met, L’Economiste reported citing Mr Abderrazak Hssaien, Director of Agriculture with Mutuelle Agricole Marocaine d’Assurance (MAMDA).
The scheme covers several climate risks including drought, excess water, frost, hail, strong winds and sandstorms. The government subsidies the premiums paid by farmers, mostly smallholders, at a rate of between 53% and 90%.
But while subsidies are making agricultural insurance more attractive, slow claims processing claims is hampering faster growth, said L’Economiste.
For example, flood claims from the end of last year are still pending, with payments expected to start only in June. “Valuations are currently underway. And as soon as declarations by the communes affected are made, the affected farmers will be compensated,” said Mr Hssaien.