Research

Deep study of any subject is a research Methodology

In this project we use ratio method Methodology

Research

Deep study of any subject is a research Methodology

In this project we use ratio method Methodology

AGRICULTURAL INSURANCE

The following are some of the comments of the respondents in the sector and observations

by the consultant:

Aside from WINCROP there is no other facility available in any meaningful way to

the small farmer in terms of insurance, bearing in mind that WINCROP is geared

to one crop; Bananas.

In the local context there is an issue of decline in registered farmers in WINCROP

which has affected the scheme significantly in the area of premium collection.

This it may be concluded has occurred primarily because of some farmers’

negative past experiences and the fact that only in St Lucia (still has the largest

registered banana farming community) there is an absence of legislation that

mandates all farmers to buy into the scheme.

Some financial institutions wherever the necessity arises have approached

Insurance companies/brokers to buy crop insurance for some of their clients but

with little or no success.

No difficulty for farmers to insure their homes; buildings and furniture etc.

There has been some success albeit still very small in the area of insuring fishing

boats and engines. This situation in itself has presented problems and concerns

for all parties involved i.e.; fisherfolk, financial institution and insurance

company.

Some of the major insurance companies have not seen this area of business as

lucrative as a matter of fact most consider it extremely risky and have

maintained a hands off approach

There is still a significant need for insurance as a risk sharing mechanism

Most or all respondents are of the view based on what obtains in other

jurisdictions and current global financial risk situations (which includes worldwide contraction of
reinsurers for agriculture coupled with high cost paid to reinsurers) that any meaningful crop insurance
scheme envisaged must in essence

have significant public sector input in a public-private partnership mechanism.