While the co-reinsurance group, which should allow insurers to share data and pool portfolios, is provided for by the harvest insurance reform, the draft ordinance does not require its implementation. For Groupama, this pool of insurers is however the necessary condition to offer all farmers insurance contracts, at reasonable conditions.
For Groupama, the establishment of a co-reinsurance pool is necessary to allow all farmers access to insurance, under reasonable conditions. (© Terre-net Media)
Voted in February, the crop insurance reform is awaiting the publication of its application texts to be implemented effectively. And if the constitution of a co-reinsurance pool should normally be part of it, the latest draft order provides for the moment “a very administrative and very long procedure” for its implementation, regrets Groupama. The text in fact asks insurers to organize themselves in order to present a grouping project, which has little chance of succeeding given the differences in position between insurers rather “agricultural”, supporters of this pooling, and the others, believes Delphine Letendard, Insurance Director at Groupama.
A risk selection that will leave many farmers out
It therefore remains possible today that this pool will never see the light of day, but “its implementation contributes to the success of the law which must develop crop insurance”, explains Pascal Viné, director of institutional relations at Groupama. Because access to national solidarity is not the same whether the farmer is insured or not, and it is on the ability to pool that the possibility of offering insurance to all farmers depends. “Otherwise, the risk selection process will inevitably leave out a certain number of farmers, this is what has been happening for 15 years, and there is no reason for this to change until we have pooled on the scale of the market” , he explains. Consequently, the absence of a pool will limit access to national solidarity for farmers who will not have been able to obtain insurance for lack of an offer adapted to their situation.
With climate change, hazard-related damage has increased dramatically. ” The claims that we have known in recent years in the agricultural sector, we can’t support it anymore “Warns Delphine Letendard. Today, Groupama is on its side in a recovery trajectory, “with reductions in guarantees, we re-increase the deductibles, we withdraw optional guarantees, we make upward price adjustments”, explains t -she.
Without a co-reinsurance group, which would make it possible to pool technical data and pool portfolios, “on risks where we have a good level of technical expertise, we will continue, but on areas where we judges that we are a little technically fragile, or that the volumes of commitments are too high with a concentration of risk, there we will do a technician’s job and we will select a little more, ”explains Delphine Letendard. Arboriculture and grasslands may therefore be more difficult to insure.
Even less incentive insurance for farmers
“We will also have a difficulty, that of providing an insurance contract to reasonable terms », adds Pascal Viné. “This approach was consistent if we pool the risks with a pure technical premium calculated on the scale of the market”, like what exists in Spain for example, he adds.
“We are going to have a problem setting up these reasonable conditions, and access to national solidarity. While farmers are already quite reluctant and have been wondering for 15 years, our wish is to be very clear vis-à-vis them, we put all the assets on our side, we are in a dynamic pooling for open crop insurance to as many people as possiblein any case to all those who wish to go there”, emphasizes Pascal Viné.
The order must normally be published before September 2.
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