Cultivating growth with agricultural reinsurance

An increasing population combined with climate change makes solid agricultural reinsurance know-how a must for those in business. This is highlighted in the new Swiss Re brochure Agricultural reinsurance – a growth story.

Global population growth, a rising demand for plant-based raw materials, and an increase in meat consumption:  all of these factors are driving a boom in agriculture which is set to continue.

Still, this progress is under pressure. Severe weather-related events, such as droughts and floods, are striking in ways not experienced before. In addition, diseases are shifting with the changing climate, threatening harvests, forests, livestock, aquaculture, and the livelihoods of everyone depending on these resources. This rapidly changing risk landscape is not only challenging producers; it is also a big issue for the agricultural insurance industry.

As the world becomes riskier, up-to-date information on risk and its mitigation becomes more important.  "With the closely interconnected risks we see today, predicting loss patterns in the future becomes more and more difficult," says Kurt Maureder, Swiss Re Head Agriculture Reinsurance.

The current status and know-how in the field is summarized in the new brochure Agricultural reinsurance – a growth story. It presents the current market status together with a description of all agricultural insurance products from indemnity- to index-based solutions. The latter are especially important in emerging markets, since a large part of the world population is fed by small farmers from these regions. The importance of their role is expected to increase in a world set for 9 billion people in the decades to come.

"Agricultural insurance is necessary to give farmers the protection they need to keep on farming," adds Maureder. Know-how for the insurers in the market is the first step in this direction.

Learn more about Swiss Re's agricultural expertise and how we help increase food security.

Published 30 September 2013


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