Africa News - Morocco: Agriculture Ministry developing new farm insurance model
Source: Middle East Insurance Review | Mar 2016
Morocco’s Ministry of Agriculture and Fisheries is preparing to design a parametric model to provide insurance to farmers, reported the news website, Le360.
The project is part of a programme carried out with the support of the French Development Agency, which includes managing climate risks.
The Ministry said that it is now testing the feasibility of a drought insurance model using parametric methods that would complement or replace existing insurance plans. The project will lead to the establishment of a strategy for improving and expanding agricultural risk management.
Last month, Saham Assurances, one of Morocco’s largest insurers, suspended a farm insurance scheme within days of its launch. The scheme attracted strong criticism, including allegations that “exclusivity” had been given to the company, whose founder and main shareholder is a government minister.
Saham Assurances had signed a public-private partnership agreement in January for farm insurance with the Ministry of Economy and Finance, the Ministry of Agriculture and Fisheries and Moroccan Agricultural Mutual Insurance (Mamda). Under it, the state would provide a subsidy to farmers of up to 90% of the premium.
The Agriculture Ministry has said that it is ready to sign similar agreements with other insurers. It is understood that to date, none of them has expressed interest.