In the absence of an agreement with the insurance companies, the state manages the solidarity part of the new crop insurance


Since January 1, 2023, the French farm has had a new harvest insurance system in accordance with the law of 2. March 2022, which sets a “fair sharing of risk between the state, farmers and insurance companies” says a statement from the Department of Agriculture detailing a “a three-tier climate risk coverage system that provides for the absorption of low-intensity risks at the individual farm level, pooling between territories and sectors with medium-intensity risks through the multi-risk climate insurance, whose premiums will be subject to a public subsidy, and direct compensation from the state against so-called catastrophic risks”. Either for the wine sector a deductible set at 20% of crop loss for crop insurance, with intervention from national solidarity from 50% of climatic damages (to 90% compensation from the public authorities).

Meeting on 16 December, the Commission responsible for orientation and development of insurance guaranteeing damage caused by harvest (CODAR) supports this well-oiled system, but faces “a difficulty” stop the fine mechanics of this accelerated reform. The problem concerns the practical modalities regarding “establishment of a network of approved interlocutors, responsible in particular on behalf of the state for compensation based on national solidarity, and consisting of insurance companies distributing subsidized multi-risk climate insurance” indicates the ministry. Who mentions that negotiations must continue to determine the management costs of these one-stop shops, rue de Varenne adds that “These approved interlocutors must allow farmers to have only one interlocutor per crop type and thus make their compensation easier”.

Technical and financial agreement

Unable to imagine “an intervention by insurance companies on behalf of the state in the management of uninsured farmers”CODAR approved the announcement from Minister of Agriculture Marc Fesneau: from January 1, “The state would take its responsibility not to leave any farmer without a solution and would manage”. Be one “transition management” by public authorities, “until 31 December 2023 at the latest” to “that there is an agreement with the insurance companies both on the technical and financial level”.

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