Crop Insurance helps farmers manage impact of Climate Change
Think of Climate Change and your mind focuses on the devastating impact of extreme swings in weather conditions: from more storms and persistent rain, gusts, and hailstorms to long periods of drought. Farmers are often one of the first victims of these climate events, at worse losing entire harvests, and in turn their livelihoods.
When AG and specialist insurer Hagelunie joined forces at the start of 2020, farmers in Flanders were able to insure their field crops, some for the first time, against the damage caused by six natural phenomena through a comprehensive climate risks weather insurance. AG has always enjoyed a prominent presence in the agricultural sector, offering protection for buildings and machinery. Coverage now extends to the protection of field crops bringing greater peace of mind to farmers removing a lot of the uncertainty that climate change has introduced.
The partnership with Hagelunie combines AG’s knowledge of the sector and extensive distribution network with the specialist expertise of Hagelunie in the field of glass, horticultural and crop insurances.
Global warming is undeniable and will have increasingly serious consequences in the coming years. Our Broad Weather insurance is offering an important solution for Flemish farmers. Moreover, the claims are settled faster with more certainty and – in general – more extensive compensation than through the historical channels of the regional authorities’ Disaster Fund.
But as always, the proof is in the actual impact this new insurance is having. And at the end of the first harvest season the results were very positive both in terms of the number of contracts concluded but also in terms of damage management. The extremely long drought in the spring of 2020 had a significant impact on the agricultural sector with crops such as maize, potatoes, onions, carrots, and fibre flax all badly impacted leading to smaller harvests later in the year. That loss of harvest was compensated by the new insurance policy with up to 80% of the damage suffered paid out.