Magazine date:
Feb 2016 Rainfall scarcity in South Africa has strongly damaged crops. Insurers, sensitive to such issues, are now taking no chances, thinking twice before accepting any risk coverage.
In view of the scale of drought, some kinds of seeds and certain areas of the country, deemed too risky, are ruled out from any coverage. Insurers also make sure that the fields under coverage receive enough moisture.
As farmers have failed to sow their fields early enough to avoid frosts, they are encountering greater difficulties to get insured as the premiums required exceed their budget. Agricultural insurance reports an annual turnover of 60 million USD, that is 2% of the non life class of business.