CMA, Ministry of Agriculture and OCCI Continue Discussion on Agricultural Insurance
The work team on the economic feasibility of agricultural insurance continues its efforts on the possibility of agricultural insurance , requirements of insurance companies and the mechanism for coverage and provision of coverage for the owners of agricultural projects as well as recommending on the alternatives to protect farmers and fishermen from natural catastrophes and plant diseases.
The team was formed as a result of the recommendations of the seminar on agricultural insurance products held at the premises of CMA in the first half of 2016 with the participation of the Ministry of Agriculture and Fisheries and Oman Chamber for Commerce and Industry.
The team is chaired by CMA and comprises representatives from the Ministry of Agriculture and Fisheries, OCCI, Oman Reinsurance Company and representatives of insurance companies.
The team held so far four meetings the last was on 4 January 2017 in which the types of insurance coverage needed by agricultural activities in Oman was discusses in order to mitigate the impact of risks the agricultural activities are exposed to as well as knowing the challenges and obstacles facing insurance companies in providing products for the crops and agricultural activities, livestock and fisheries to ensure their ability to withstand the risks and continue productions.
Whereas the idea of agricultural insurance is new to the Sultanate the work team acquainted with the experience of certain countries with long experience in this field to learn the mechanisms of such type of insurance and the challenges encountering the application and identification of the types of products for the early stages of agricultural insurance in the Sultanate. The team obtained all the data and information required to prepare detailed study on the possibility of applying agricultural insurance and the visions of insurance companies to provide coverage for the agricultural sector.
The study included ideas and work plan to educate the farmers to improve their management and financial performance. The Ministry of Agriculture will set out a conception to prepare and urge the farmers to accept and adopt the idea of agricultural insurance as well as gradual application through requirements on comprehensive insurance. The team coordinated with the officials of the Ministry of Agriculture to obtain more data and statistics to complete the study which include type of coverage, expected premium, settlement method and payment of claims and the recommendations of the team on distribution of products in addition to proposals on creating demand from farmers in the Omani market.
The team expects to finish the study in the first quarter of this year to discuss it in details with the Omani Agricultural Association for their opinion to submit it to the concerned entities.