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Agriculture’s climate risks: something new in insurance

The state and insurance companies have simplified procedures to better compensate compensation claims due to climatic hazards.

During the violent hailstorm last June, farmers complained of insufficient compensation for the losses suffered. They wanted a reform that would provide better coverage. At the same time, the state considered changing the compensation process. At the end of October, during a meeting, the local bank Crédit Agricole took stock of the new regulations that are now in force. This information was requested by Jean-Michel Le Bihan, he is particularly concerned about this issue. In fact, he is the mayor of the municipality, mainly agricultural; he himself is a farmer; he is the chairman of the local bank of the green bank; finally, he is chairman of the agricultural committee of the Trie-Magnoac intermediate society. Three representatives of Crédit Agricole and its insurance division moderated the meeting: Christophe Gallego, director of the local branch; Ludovic Le Boulch, Head of Professional Insurance; as well as Jérôme Lussan, head of the Gers-Nord Bigorre sector. About 50 farmers attended this meeting.

A NEW SNSF

Three principles underlie the reform. The state pays for a free guarantee, the FNS (National Solidarity Fund), which replaces the system of “agricultural calamities”; the state delegates management to insurance companies; thus the interlocutor will be unique; FNS can be supplemented with another cover; then the compensation from the state will be doubled and the method of calculating losses will be the same for FNS and for the insurance company. In cases where FNS applies, it provides up to 45% for the uninsured and up to 90% for the personally insured. We also note the universality of coverage, all crops can be insured. The meeting was characterized by discussions with the facilitators. Reviews and questions seemed to indicate that this device was not entirely satisfactory for some. However, it has the advantage of being a simplification of what already exists; the individual interlocutor brings a clear clarification. Finally, it leaves everyone free to decide what level they accept to be their own insurance company, and therefore on their own.

If the farmer takes out additional insurance, he must take it out with an insurance company approved by the state for this type of risk; this insurance company will necessarily be unique for the entire enterprise.

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