Hans FEYEN
Director
Head Agriculture RI Centre & Europe, Swiss Re

XPRIMM: What are, in your opinion, the main reasons for which a very large proportion of the agricultural production is not insured?
Hans FEYEN:
Often the local knowledge to set-up insurance schemes and to define insurance products is not available. In other occasions, the government is providing ex-post disaster relief to farmers rather than pushing for an ex-ante risk financing trough insurance products. Budget to provide insurance premium subsidies, as provided in most developed countries, is often not available.

XPRIMM: How much can help technology reducing the insurance gap? May digitalization be the driver?
Hans FEYEN:
Technology and digitization are the most important drivers to close the protection gap for agriculture in developing countries. Technology often allows farmers to get an easy access to parametric insurance products, e.g via mobile phones. By using satellite images and high resolution weather data, it is possible to build insurance products that provide an appropriate cover against yield drops.

As in developing countries agriculture is often small-scale, it needs technology to design and sell insurance products in an efficient way.

XPRIMM: Climate change is definitely challenging for the agricultural sector. How is agricultural insurance adapting to this trend and what solutions can it provide to support the farmers' financial security?
Hans FEYEN:
Climate change is a steady process and allows insurance companies to adapt their products to cope with the increased volatility and severity of climatic events. It is as such crucial that regular product reviews are performed and necessary changes are implemented.

As an example: the wide-spread frost damages in Europe this spring were due to an unusual cold spell, but also due to the early start of the vegetation period. The latter can be observed since about a decade, and is an element that should be considered in the insurance product design.

XPRIMM: In your opinion, which should be the best solution to reduce the agricultural insurance gap?
Hans FEYEN:
In the end it all boils down to defining the right insurance product and service to the farmer. It has to work for the farmer, but also for the insurance company to be sustainable in the long term. Other elements like subsidies, insurance pools and limiting ex-post government payments will be supportive.


Related articles

photodune-3834701-laughing-girl-xs

STATISTICS: BULGARIA 1Q 2017: GWP up by 9.7%

The total GWP by Bulgarian insurers in 1Q 2017 was BGN 572 million (EUR 293 million), up by 9.7% y-o-y, according to the quarterly statistics published on the country's financial regulator website.

2017-09-14

Bulgarian NADEZDHA Insurance Company's licence revoked

The Bulgarian Financial Supervision Commission (FSC) has revoked the licence of NADEZDHA Insurance Company for carrying out insurance activity for all classes of insurance, forbidding the company to conclude any new re/insurance contract for six months.

2017-08-23

ON THE MOVE

TOP EVENT

BB Headlines: Rates are settled to increase following Q3 events

The main effect after the Q3 nat cat bill of over USD 100 billion: Global reinsures said - the "discounts and reductions in tariffs era" especially in European reinsurance market for the January 2018 renewals, will come to end. At the same time, some reinsurers might disappear and there are likely to be more mergers, acquisitions and run-offs processes.

23.10.2017

photodune-3834701-laughing-girl-xs

Baden-Baden Reinsurance Symposium: the industry-wide impact of disruption

"In our business we are more than used to disruptions [...] But the pace of disruption has been amplified by new sources of data and by the increase in the power to collate this data", James NASH, the President, International of GUY Carpenter stated during his opening address at the Reinsurance Symposium in Baden-Baden on 22 October.

23.10.2017

The 9th International Istanbul Insurance Conference started today in Istanbul

In emerging markets like Turkey, there can be a significant difference between the insured and total insurable losses. Parametric insurance is a smart way to close this protection gap. While the traditional products cover an insured loss, parametric products provide financial protection for various expenses from financial liabilities to contingent loss of profit which, in return, decreases the economic loss burden following a CAT event.

04.10.2017

See all