FINACTU Group has announced that it’s been chosen by the Moroccan government to support the establishment and supervision of a parametric insurance solution to protect the country’s agricultural sector from drought risks.
According to FINACTU, tenders will be called during the first six months of 2018, with a view to purchase the parametric, or index-based insurance cover for the 2018-2019 agricultural season.
FINACTU, a consulting firm, will support the Ministry of Agriculture, Maritime Fisheries, Rural Development and Water & Forests in developing the scheme, which is the first of its kind in the country.
Parametric insurance solutions are helping an increasing number of countries, especially the most vulnerable and poorest, manage the impacts of natural catastrophe events, such as drought, rainfall, storms, and so on.
The rapid payment following an event that’s enabled by a parametric trigger structure is hugely beneficial, as funds are delivered much faster than an indemnity structured solution, for example. This means regions can start rebuilding and recovering from any adverse weather events much faster, which somewhat mitigates the overall financial and social strain.
FINACTU has been tasked with specifying the technical outlines of the solution, then to arrange a global tender that will ultimately select the risk-taker, and to then monitor the implementation of the insurance protection.
FINACTU said that its selection by the government compliments its track-record in the implementation of other agricultural insurance solutions in Africa, and in Morocco, where it has assisted the Ministry previously, in both 2010 and 2015.
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