Business Session 5
13 November 2019 (11:15 – 13:00)
Taj Palace Hotel, New Delhi, India
Session Theme: Agriculture Insurance and Risk Management especially to facilitate achieving SDG
Session Organiser : Confédération Internationale du Crédit Agricole (CICA), Zurich, Switzerland
Farming has always been a risky business, but agricultural producers are facing increased uncertainties caused by climate change, rising competition due to globalization, and larger fluctuations in market prices resulting from more frequent and intense trade frictions. These situations chiefly affect people who rely on farming, livestock, forests or fishing for their food and income – around one-third of the world’s population. People with resilient livelihoods are better able to prevent and reduce the impact of disasters on their lives. They can better withstand damage, recover and adapt when disasters cannot be prevented. Agricultural producers employ a variety of strategies to manage financial risks including investments in lower risk enterprises, enterprise diversification, maintaining relatively low debt-to-asset ratios and adequate financial reserves, and developing off -farm income sources. In all countries, farmers need to dispose of an array of efficient risk management tools and strategies to be able to contribute to food security and other Sustainable Development Goals (SDGs). The national governments are often involved in many aspects of providing agricultural insurance including subsidizing the premiums to reduce the burdens of smallholders.
Agricultural insurance is one of the tools and mechanism which arguably can provide pathway in proofing the smallholder against the shocks. When protected against weather-induced damage, crop and livestock producers, especially small farm holders, can escape poverty and invest more on their farms, as they are more likely to obtain loans. The entire food value chain is strengthened, and it becomes more efficient and resilient. However, the market of agricultural insurance is still underdeveloped. Three countries – the United States, China and India – make up two thirds of premiums, while Africa as a whole account for less than 1%. In many countries, including in Europe, several obstacles remain to the large-scale adoption of farm insurance. There is an urgent need to design and implement successful insurance programme for agricultural activities which should be unique and according to the country context and accepted by all stakeholders. A successful Agricultural insurnace programme depends on developing and maintaining transparency at all levels starting from private insurers, farmers and responsible government agencies and other stakeholders who need to understand the aspects of the insurance process.
The panel will discuss the conditions for a successful adoption of agricultural insurance programme, based on the experience from different countries and various industry actors. The session will be in apposition to provide suitable response to the questions (a) How can bankers and insurers better reach out to farmers? (b) What role should play the governments? And (c) how better articulate the actions taken by the private and public sectors to improve the farm risk management landscape? The session details appended below:
11:15 – 13:00
Business Session 5 (Code BS 5)
Session Theme: Agriculture Insurance and Risk Management especially to facilitate achieving SDG (Session hosted and organized by CICA, Zurich, Switzerland)