A JOINT team of experts from the World Bank and the Inter-American Development Bank (IDB) is expected in the island today to begin talks with the Caribbean Catastrophe Risk Insurance Facility (CCRIF) and Government on the feasibility of providing insurance for the agricultural sector.

Chief executive officer of Caribbean Risk Managers Limited, Dr Simon Young - supervisor of CCRIF - says the joint team will be led by Diego Arias of the World Bank.

CCRIF is exploring the feasibility of providing insurance coverage for the agricultural sectors of those countries to which it provides insurance. The fairly new regional parametric insurance fund currently indemnifies 16 countries in the Caribbean, including Jamaica, against hurricane and earthquake damage to the tune of US$50 million.

Increasingly important

Marsha Smith, public relations officer for the CCRIF, says due to the complexity of providing such coverage, a policy would not be expected to be introduced before mid-2009.

Insurance has become important to the agricultural sector because of the increased risk for natural disasters as a result of increased global temperatures.

Global climate change will affect rainfall, temperature and water availability for agriculture in vulnerable areas, scientists say, and in areas like Jamaica, both weather extremes are already being felt.

Battered by nature

The sector took a battering last year from hurricane Dean as well as in 2005 and 2004 from hurricanes Dennis, Emily and Ivan, with loss to the industry reaching several billion dollars.

At the other end, excessive dry conditions have become more frequent. The latest day spell started late January and has already caused several million dollars in damage to crop and livestock in the last three months. St Elizabeth - the country's bread basket - and northern parishes - St Ann and St Mary - were the worst hit.

The availability of agricultural insurance will mean better food security for Jamaicans who are already feeling the sting from rising food prices and are being challenged to produce their own in order to protect themselves from rising world prices.

Model of insurance

Government announced recently that it had started discussions with the IDB with a view to providing a parametric model of insurance for the sector. That model of insurance allows for quick payments to be made to the policyholder, after an event has struck, in order to get the sector back on its feet.

"This model will require a four-way commitment involving the Government, in terms of providing the infrastructure to measure the parameter; the farmers who will be required to pay premiums; the insurance companies which will provide coverage and re-insurers for underwriting the risk," says Agriculture Minister Christopher Tufton.

A feasibility study is to be conducted, the minister said, to chart how best the insurance could be provided to farmers.