| Crucial breakthrough…By Leonard GildarieGuyana’s fight to introduce disaster insurance has moved one step closer to becoming a reality with a regional body saying that it will be ready with a plan to provide coverage within months.On Friday, the Caribbean Catastrophe Risk Insurance Facility (CCRIF) indicated that it will be able to provide coverage for excessive rainfall by year end.Currently, CCRIF only provides coverage for hurricanes and earthquakes, but following representation by Guyana and other interested groups, CCRIF has been developing a facility that will assist the country in managing the cost of impact of excessive rainfall.A team headed by Todd Crawford from CCRIF met with Minister of Agriculture, Robert Persaud on Friday to discuss, among other things, the different possibilities.Minister of Agriculture, Robert Persaud, meeting with Todd Crawford and other officials of the Caribbean Catastrophe Risk Insurance Facility (CCRIF) on Friday.Also present at the key meeting was Prema Roopnarine, Deputy Permanent Secretary (Finance), Ministry of Agriculture.According to the Ministry, Persaud made a case for “urgent attention” in this regard as Guyana attempts to mobilise support for a risk insurance facility in light of the intensifying negative effects of climate change.The Minister noted that the insurance could also be a pilot for other CARICOM countries facing flood risks and threats to its economy and infrastructure.“Further, Minister Persaud emphasised that the facility will provide a regional tool which can be used to help manage the risks caused by extreme rainfall, as well as droughts, which are being experienced in a number of CARICOM countries currently.”Meanwhile, both parties agreed that the facility will be invaluable in analysing the impacts of past rainfall (and drought) events and changes in rainfall patterns due to climate change.“This will also contribute a great deal towards efforts by the Government of Guyana in Risk Management and Agriculture Insurance.”The issue of crop insurance and coverage for flood, drought and other related insurance is one that Guyana has been attempting to tackle for a while now, with farmers every year facing threats.However, insurance companies locally and regionally have been reluctant to come on board, expressing worry about a sector that may be too risky.A recent forum of financial analysts and agriculture experts, while recognising the need, failed to arrive at an immediate solution.Within recent years, farmers have lost millions from a yearly cycle of flooding, and just recently, a drought.With Guyana’s coastline well under the sea level, the threat has become even more evident, especially with increasing high intensity rainfall.In June, a three-day symposium in Antigua and Barbuda recognised the enormous challenges in implementation of any plan.The Guyana government said that all is not lost and a public/private partnership may be the best solution.Any system involving agricultural insurance in Guyana must be effective, efficient and sustainable in the long term and the exact details of this partnership are currently being examined, according to Minister of Agriculture, Robert Persaud.The symposium was co-ordinated by the Caribbean Community (CARICOM) Secretariat, the Ministry of Agriculture of Antigua and Barbuda and the Inter-American Institute for Co-operation on Agriculture (IICA).The World Bank, Caribbean Development Bank (CDB), Food and Agriculture Organisation (FAO) of the United Nations, the Caribbean Disaster Emergency Management Agency (CDEMA) and Government of Australia Aid Programme also supported the event.The issue of crop insurance has been taking the front burner recently with increasing calls for mechanisms to ensure that the agricultural industry is protected a little more.Between 1988 and 2006, Guyana has recorded annual losses due to flood and drought at an average of US$35M.“These events can put a tremendous amount of pressure on Guyana’s productive capacity, its economic stability, its budgetary planning systems and compromise food security both regionally and nationally. Furthermore, they have the frightening power to reverse any gains on poverty reduction, which is predominantly concentrated in Guyana’s rural areas,NFL Jerseys Supply, where agriculture is the main source of income,” Persaud said in a message to the Antigua meeting.The meeting had concluded that some farmers’ insurance in Guyana and the Caribbean may just not be possible.Insurance companies may have to modify or customise their policies to fit particular situations, experts say.Agriculture is the most important economic sector in Guyana, accounting for approximately 50% of employment, 30% of GDP and 40% of export earnings. |
