-gov’t could be asked to subsidise first year of premiums
By Khadidja Ba
A landmark regional insurance programme for farmers could kick off here next month and could see the Guyana Government being asked to subsidise the first year of premiums.
The newly launched Regional Economic Agri-Insurance Programme aims to shield farmers from the impacts of natural disasters and climate change. The initiative was launched at the Arthur Chung Conference Centre in July 26 2024.
Damian Bowen, Managing Director of Lynch Caribbean Brokers in Bar-bados, detailed the programme’s objectives and framework during a follow-up Zoom interview with Stabroek News.
“This initiative is designed to offer tailored insurance solutions to farmers across the Caribbean,” Bowen explained. “Instead of a one-size-fits-all approach, we are leveraging data analysis and modeling to create customized coverage that meets the specific needs of each participating country.”
The insurance programme will provide region-wide support, utilizing economies of scale while addressing individual national requirements. For instance, in Guyana, where the government is actively involved, initial plans include subsidizing the first year’s premiums for registered farmers to boost participation. Bowen noted, “In Guyana, we are exploring how the government can play a crucial role in reducing the financial barrier for farmers in the first year.”
The programne’s design includes a parametric insurance model, which triggers automatic payouts based on weather data. This system aims to provide swift financial relief to farmers affected by adverse weather conditions, bypassing traditional claims processes. “Our goal is to ensure that payouts are processed quickly—within two to four weeks—by relying on satellite data rather than manual claims reporting,” Bowen said.
Key benefits of the programme include enhanced confidence in agricultural financing, which is expected to encourage investment in essential agricultural inputs. Additionally, by providing a safety net, the initiative hopes to inspire more young people to pursue careers in agriculture. “This programme is not just about insurance; it’s about fostering a more resilient and appealing agricultural sector for the next generation,” Bowen added.
The implementation of the programme will involve collaboration with the Ministry of Agriculture in Guyana and various CARICOM members. Major Caribbean agencies focusing on agricultural resilience have shown interest.
As the programme moves forward, it will emphasize education and outreach. A comprehensive public education campaign will be rolled out, including digital resources, town hall meetings, and engagement with extension officers to ensure farmers are well-informed. “We are committed to making sure farmers understand how to utilize this insurance effectively and are prepared for its benefits,” Bowen stated.
The programme is expected to undergo a final design phase over the next two months, with rollout in Guyana anticipated by September. The initiative’s effectiveness will be measured by its ability to provide timely support during climatic events and its success in engaging the farming community.
As Caribbean nations unite to address climate challenges and strengthen agricultural resilience, the programme, according to Bowen represents a bold step towards a more secure and sustainable future for the region’s farmers.
