Mr. Mohammed BOUSSAID, Minister of Economy and Finance, and Mr. Aziz AKHANNOUCH, Minister of Agriculture and Maritime Fishing, signed Wednesday, January 20th, 2016 in Rabat, an agreement to launch a new agricultural insurance product with “SAHAM Assurance” company.
The Minister of Economy and Finance believes that this agreement reflects the State’s support to agriculture. "The product that is being launched today benefits from significant grants, since the share the farmer pay on average represents only 10% to 15% of the insurance fees. The remaining part shall be financed by the State", stated the Minister. He added that since 2011, and taking into account the current product, the State will provide nearly 1.5 billion dirhams to this agricultural insurance system.
During this event, Mr. BOUSSAID recalled the first coverage which was set up in partnership with the “Mutuelle agricole marocaine” (MAMDA) through the insurance product " Multirisque climatique” (Comprehensive climatic insurance) whose marketing began in 2011.
“Benefiting from this experience and willing to accelerate this system, the State and 'SAHAM assurance ' company, which has expressed its determination to be involved in this area, agreed to set up a new insurance product ' Taamine Al Mahssol’, quite -similar to the insurance product " Multirisque climatique” offered by the MAMDA, particularly in terms of the risks covered and the crops concerned," stressed the Minister.
The new agricultural insurance product "TAAMINE AL MAHSSOL / تأمين المحصول" is launched as part of a public private partnership between the State and the “SAHAM Assurance” company. It will allow farmers to benefit from a much extended coverage, since it guarantees cereal, pulse and oilseed crops against major climatic hazards including: drought, flooding, frost, hail, strong wind and sandstorms.
The State contributes to the financing of this product through a subsidy to farmers’ contributions, mainly directed to small-scale farmers and which can reach 90% of the insurance fees.
The product "TAAMINE AL MAHSSOL / تأمين المحصول" will be released from January 21st, 2016 through the network of 'SAHAM Insurance' company.
This process comes as part of a more global project of agricultural insurance development in Morocco with the aim of reducing the vulnerability of small-scale farmers to risks and to promote and secure agricultural investment. The Department of Agriculture has, in fact, set up since 2011 an ambitious strategy of risk management with insurance considered as a major tool and an important aspect for improving productivity through encouraging the adoption of climate-resilient agricultural practices in an increasing climate risks framework.