STATISTICS:

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

Bulgarian FSC revoked the SyVZK's license

The Bulgarian Financial Supervision Commission (FSC) has revoked the licence of the life insurer SyVZK (TUMICO - Trade Union Mutual Insurance Cooperative) for carrying out insurance activity for all classes, forbidding the company to conclude any new contract for six months.

2017-12-07
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

Swiss Re appoints new CFO and proposes new members to the BoD

Swiss Re announced that John DACEY, currently Group Chief Strategy Officer, is appointed Group Chief Financial Officer, effective 1 April 2018. He succeeds to David COLE, who will step down to pursue a non-executive career, while remaining a board member of several Swiss Re subsidiaries.

Piotr OZAREK is the PZU's first Ombudsman

Piotr OZAREK was appointed to perform the newly established function within PZU, as the first client's spokesperson of the insurer. His main task will be of helping in the most difficult and complicated cases in which PZU's clients are not satisfied with the solution.

Desmond BOHAN joins JLT Re as Senior Vice President

JLT Re, part of the global provider of reinsurance broking and consultancy, has appointed Desmond BOHAN as Senior Vice President in Stamford, Connecticut. He will focus on the continued expansion and development of JLT Re's Program practice in North America.

TOP EVENT

"Insurance and Pensions reloaded" - the 7th EIOPA Annual Conference

The 7th EIOPA Annual Conference takes place today in Frankfurt am Main, Germany. A review of the current supervisory covergence issues and of the prospects of the Pan European Personal Pension Product are on the event's agenda, together with analyzing the ways in which regulation may enable innovation.

22.11.2017

photodune-3834701-laughing-girl-xs

"IIF2017 - Insurance in the DIGITAL World" Conference took place in Vienna

"IIF2017 - Insurance in the DIGITAL World" conference brought together in Vienna well-known insurance professionals from all over the world who analyzed the latest digital trends in the industry, taking into account the fast digitalization of the financial services providers' world, in particular in the insurance field, which is creating both huge opportunities and strong challenges for the players.

14.11.2017

photodune-3834701-laughing-girl-xs

Croatian Insurance Days Live

On 9 November has started in Opatija, Croatia, the 2017 edition of the Croatian Insurance Days Conference, the traditional meeting of the Croatian insurance top professionals with their European peers. XPRIMM Publications are supporting the event as Media Partners.

09.11.2017

photodune-3834701-laughing-girl-xs

The 2017 Baden Baden Meeting: Short recap

The Baden-Baden meeting, one of the key events in the reinsurance calendar, has just set the final point of this year's edition. XPRIMM Publications have reported from the meeting's premises. Let's recap!

26.10.2017

Baden Baden Headlines 3: CEE insurance markets are attractive for reinsurers

Central and Eastern Europe insurance markets are an important source of business for Lloyds, total premium income from this region increasing by EUR 64 million since 2010, pointed out the Lloyd's representative in a seminar dedicated to CEE insurance markets: "We are seeing strong growth from Czech Rep, Poland, Slovakia and Ukraine. At the same time are some contractions from Russia, Bulgaria, Romania and Hungary due to challenging trading conditions as political implications and other sanctions".

25.10.2017

Baden Baden Headlines 2: cyber insurance market set to grow under regulatory presure; nat cat events more frequent, but losses per event are decreasing

Asian insurance market, especially the Indian market - are considered to be "the new El-Dorado" of the global re/insurance market, with rapidly expanding markets and an dynamic environment: "Indian P&C re/insurance markets are expected to grow at a pace of 15% per annum", according  to Victor PEIGNET, CEO, Global P&C, SCOR SE. The French -based reinsurer setted-up its Indian branch in 2016, after the authorisation from the local market authority - IRDAI. India's re/insurance market has become more attractive for global companies following the relaxation of regulatory requirements, and lately, "big names" in the industry entered the market by opening branches: GEN Re, SCOR, Lloyd's of London, MUNICH Re, SWISS Re, Reinsurance Group of America (RGA), HANNOVER Re, XL Catlin and others.

24.10.2017

See all