Thailand considers making crop insurance mandatoryMarch 11 2016 by InsuranceAsia News Staff
The Thai government aims to protect the country’s farmers from the impact of natural disasters by making crop insurance mandatory.
A steering committee on the economy has proposed a law to make crop insurance permanent to ensure protection of farmers and secure their income in the event of natural disasters.
Luck Wajananawat, president of Bank of Agriculture and Agricultural Cooperatives (BAAC), said making crop insurance permanent was agreed by a working panel on crop insurance reform.
Currently, crop insurance in the country is voluntary and in the early stages, prompting the panel to study agricultural insurance in other countries, focusing on rice insurance corporations and agricultural mutual insurance funds.
This year, participants in Thailand’s rice insurance schemes, which offer protection from floods, drought, windstorms, frost, bushfires, pests and diseases, are expected to reach 200,000 from last year’s 92,000.
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The data focuses on the industrial estates heavily impacted by the 2011 floods.
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However, insurance pricing in Asia continues to decline, and at an increased pace, according to Marsh.
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The country is particularly vulnerable to natural disasters and stands to benefit from regional risk pooling.
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The country's finance secretary urged the industry to rethink how it does things and how it makes products.