A new drought insurance model to be launched soon

The Moroccan Ministry of Agriculture is preparing to launch a functional parametric weather insurance. The purpose of this new cover is to deal with large agricultural areas at low management costs.

Under this type of policy specifically designed for drought risk, no more need to report the loss, compensation is triggered if the damage reaches a certain degree.
In a country where drought threatens almost 41% of the turnover of all agricultural sectors, the new product is intended to be reinsurable.

The new parametric insurance will be available on an experimental basis in September 2016.
With more than 718 000 insured hectares, Morocco has a penetration rate of weather comprehensive insurance of around 17% of the total cultivated area.