Green insurance to help farmers reduce pesticide use
Source: Middle East Insurance Review | Feb 2026
The results of tests of a green insurance system show that insurance could facilitate the experimentation and adoption of innovations and practices that reduce pesticide use.
The National Research Institute for Agriculture and the Environment (INRAE) says in a blog that farmers’ experimentation with new practices or innovative tools exposes them to a significant risk of production losses and economic hardship. The IFV (French Wine and Vine Institute) has developed a high-precision decision support tool (DST) to reduce fungicide use in viticulture. The DST tells winegrowers when to use pesticides and in what doses to avoid unnecessary interventions.
To evaluate this DST directly in the field, INRAE, insurer Groupama, and the University of Bordeaux, in collaboration with the IFV and Tutiac (Gironde) and Buzet (Lot-et-Garonne) wine cooperatives. They tested a system for four years that combined the use of the DST—tested and improved over time—with specific insurance covering losses in case of failure.
A kind of quid pro quo was established by offering insurance against diseases and pests to participating winegrowers. In exchange for a premium of EUR100 ($116) to EUR200 per hectare, they reduced their pesticide use by 30% to 50%, adhering to recommendations provided by agronomists. Scientists involved in the experiment observed that crop losses were in fact minimal—below 5%. Only one farm suffered significant losses and received compensation.
The tool was improved thanks to farmers’ feedback, and the insurer gained a better understanding of the associated risks.
The idea for the experiment stems from a real gap in the system for farmers regarding insurance against crop diseases and insect pests.
The system experimented gradually became more efficient and less expensive to insure. Since the tool cannot predict the correct dose at the right time with 100% accuracy, a risk of loss remains. While insurance is not always sufficient to encourage experimentation after a bad year, it remains an important facilitator. M