Local government officials are proudly announcing an investment of $1 million in an insurance project designed to protect banana and plantain farmers on the island from the devastating impacts of natural disasters and climate hazards.
At the recent launch of the Parametric Insurance project, a comprehensive presentation showcased the advantages of the initiative in its initial stages, along with plans for expansion to include other crop producers, livestock owners, manufacturers, agro-processors, and fisher folk on the island.
Saint Lucia’s government officials have strategically partnered with key regional stakeholders to implement this pioneering Parametric Insurance scheme for farmers.
Prime Minister Philip J Pierre emphasized the increasing frequency of natural disasters and the inherent challenges faced by businesses, particularly crop producers in the region, due to traditional insurance policies.
He asserted that this initiative goes beyond mere payouts; it embodies a commitment to resilience, food security, and job protection for farmers.
“The most devastating experience is waking up to find your entire crop wiped out with nothing left,” he stated.
“This insurance vehicle we are establishing showcases our confidence in farmers and our belief that farming is sustainable, encouraging young people to engage in agriculture, ” the prime minister added.
Highlighting the necessity for more youth in farming, he reiterated the government’s recent introduction of improved agricultural innovations for young people.
“What the government is implementing is a strategic plan,” PM Pierre stated. “You safeguard your assets while innovating, ensuring that the community is protected.”
Agriculture Minister Alfred Prospere described this development as a groundbreaking achievement within the agricultural sector. “It is crucial, as food security remains a central pillar in our country’s development,” he asserted.
He added, “Our banana and plantain farmers are particularly vulnerable to wind damage, and we are committed to expanding this initiative in the future.”
Prospere assured farmers of prompt compensation in the wake of natural hazards.
Reflecting on discussions at the Caribbean Week of Agriculture forum in the Bahamas, Prospere remarked on the necessity of addressing agricultural insurance for the entire region, especially within the OECS.
“The dialogue was fruitful, as we acknowledged the vulnerabilities and impacts of climate change on our agricultural sector,” he noted. The ministers concluded that they would approach their respective governments for the necessary EC$1 million to launch this project.
Consequently, the Saint Lucia government allocated $1 million for agricultural insurance in 2024.
Bradley St Ange, Permanent Secretary in the Ministry of Agriculture, declared, “This insurance project will be transformational. We need it, and farmers have demanded it. We’re delivering it for them.”
Damian Bowen, Managing Director of Lynch Caribbean Brokers, emphasized that the project is supported by three essential pillars, highlighting the importance of partnerships to enhance technology.
He detailed the dynamics and mechanisms of the initiative, anchored in the Regional Economic Agri-Insurance Programme (REAP), launched last July in Guyana.
Notably, REAP transitions risk from the government to the private sector, providing flexibility while spurring development and economic growth within the Policy Cycle Support framework.
REAP is designed to deliver rapid, automatic payouts to farmers based on pre-defined weather event thresholds, such as hurricanes and tropical storms. The initiative aims to offer financial protection, enhance climate resilience, and fortify the agricultural sector amid climate change challenges.
Key Details:
– Initiative: Regional Economic Agri-Insurance Programme (REAP).
– Insured Crop: Banana and plantain.
– Triggering Event: Hurricanes and tropical storms.
– Payout Mechanism: Automatic payouts based on pre-defined weather thresholds.
– Funding: $1 million allocated by the Saint Lucian government.
– Partners: GK Insurance Limited, Sterling Insurance Brokers, and Grace Kennedy Insurance EC.
– Goal: Provide financial security to farmers, enhance climate resilience, and strengthen the agricultural sector.
This parametric insurance scheme represents a decisive advance in Saint Lucia’s commitment to supporting its agricultural sector and adapting to climate change impacts.
By ensuring swift financial assistance following extreme weather events, the program is set to enable farmers to recover more effectively and build stronger resilience against future challenges.
Moreover , it is anticipated that the program will act as a model for the region to reduce the risks associated with climate change hazards.