Rise in weather claims: crop insurance is changing

In order to better manage the consequences of climate change, the reform of the insurance system will enter into force in 2023.

IFloods, droughts, violent winds and of course frost or hail…: Climate change has negative consequences for the harvest and the entire agricultural sector. Furthermore, these extreme climatic events are unfortunately destined to multiply and intensify in the coming years. By 2030, researchers announce a 10% increase in their frequency.

Crop insurance: thes benefits of the reform

LThe reform of the insurance system with effect from 1 January 2023 aims to standardize practice. Specifically, the fund for agricultural disasters will become the national solidarity fund (FSN). All farmers and all crops (even viticulture and field crops) can benefit from this system. On the other hand, access to private insurance is simplified. The state thus delegates overall management to the insurance companies. The farmer can choose, depending on the crop group, either to insure himself or to limit himself to FSN.

HAVEBefore March 31, 2023, even if they do not wish to use private insurance companies, each operator must designate a single authorized contact person, via a digital platform, which will be deployed by the Ministry of Agriculture and Food Sovereignty in mid-January 2023. Thanks to this single point of contact, the operator accompanied from the signing of his contracts to the settlement of claims. It should also be noted that the same methods for calculating losses and the same historical references will be used between the National Solidarity Fund and private insurances.

Since the disaster poccurs

IIt is advisable to report the loss to its only authorized contact person to trigger the implementation of an expert report which will determine the final loss rate after harvest. The expertise is based on the Olympic average of 5 years of operation. In the case of a grassland claim, the calculation of a grass production index derived from satellite images will allow the loss rate to be estimated. The minimum level of intervention depends on the level of excess chosen in the contract or on the threshold to trigger the DSF.

EIn the event of damage, insurance contracts provide a better guarantee of compensation than the National Solidarity Fund. Admittedly, they are more expensive and require payment of premiums by October 31st every year… but let’s remember that these “Harvest” and “Meadow” contracts are subsidized by up to 70% depending on the deductible chosen within the framework of the CAP.

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