IICA highlights the key role of the agricultural insurance in strengthening food security

San Jose, Costa Rica, December 12, 2014 (IICA). Developing agricultural insurance in Latin America and the Caribbean (LAC) is fundamental to supporting agriculture in overcoming major challenges such as adapting to climate change, promoting rural territorial development and combating poverty, as well as strengthening food security in the region.

“The push toward the agricultural insurance in LAC should be accompanied by policies that facilitate access by producers to new markets, key information, better inputs, more credit and property titles for land”, said Hatch.

David Hatch, specialist in agricultural insurance at the Inter-American Institute for Cooperation on Agriculture (IICA), stated that the governments of LAC should promote and facilitate access by small and medium-sized farmers to this coverage, which would promote recovery of the sector in the wake of an impact from possible natural phenomena.

This risk is increased, recalled Hatch, by the effects of climate change on the countries of LAC, especially in regions with the greatest vulnerability, such as Central America and the Caribbean.

At the end of November, the IICA specialist participated in a global conference on agricultural insurance, by invitation of the German Agency for International Cooperation (GIZ). The meeting was organized in Berlin by the Federal Ministry of Germany for Economic Cooperation and Development (BMZ), to discuss how agricultural insurance could benefit food security in developing countries.

“The push toward the agricultural insurance in LAC should be accompanied by policies that facilitate access by producers to new markets, key information, better inputs, more credit and property titles for land”, said Hatch.

“The success of the small farmers is the key to safety food in LAC” he added.

The conference called upon governments, insurers, reinsurers, and producers to forge public-private partnerships that make it possible to provide the agricultural insurance industry with sustainability, stability, and scalability, although the process may last for years while the risks are being understood and the best solutions are being designed.

“Agricultural insurance must focus on the demands of producers, whereas regulation can support the development of policies and innovative services”, stated Hatch.

Also participating in the forum were representatives from the ministry of agriculture of several countries and organizations, such as the International Finance Corporation (IFC), the International Fund for Agricultural Development (IFAD) and the World Food Program (WFP), among others.

For more information, contact:
david.hatch@iica.int