Climatic risks: le Cese had planned a parametric insurance dose

Le Conseil économique social et économique (Cese) proposes to supplement the agricultural risk allowance by introducing a part of the parametric insurance, the means of eligibility for subsidies does not benefit from multiple climate risk.

In the face of increasingly frequent and intense climate, cyber and pandemic risks, the Economic, Social and Environmental Council (ECA) believes that the bare insurance system alone can no longer cope. In a recently published opinion, he called for a paradigm shift in public policy and insurance techniques. The Cese also addressed the issue of climate risks in agriculture. If he does not rule on the merits and scope of the new crop insurance scheme, which will enter into force on 1 January 2023, he makes the following recommendation: parametric insurance should be worked out within the Commission. responsible for the guidance and development of insurance guaranteeing damage to crops. Codar is the governing body of a new device, bringing together all stakeholders (state, insurers, professional organizations).

More responsive index-based insurance

Parametric insurance, also known as index insurance, is based on indices. Its naked trigger is not based on the reality of a damage, found by an expert, but on the crossing of meteorological indices tells that the temperature or the pluviometry. The interest of a parametric insurance is to simplify as much as possible its operation by accelerated payment of a lump sum indemnity whose amount is fixed depending on the intensity of exceeding the contractual indicator.

The technical solutions on which the parametric insurance is based, as well as the speed of payment of the benefit in case of claims, are strengths identified by Cese. The latter advocates making parametric insurance eligible for public subsidies under climate multi-risk insurance. Le Cese, however, fulfilled one condition: « Le conseil à l’assuré is, however, particularly important in this type of insurance. It is essential that the criteria and their method of calculation are clearly written and that the insured has given his or her informed consent. ».

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