Special team studying feasibility of agricultural insurance in Oman

Muscat: A special team studying the feasibility of agricultural insurance in Oman recently discussed the requirements of insurance firms and the mechanism for farmers’s coverage, before implementing the scheme.
The team also looked at alternative measures to protect farmers and fishermen from natural calamities and plant diseases, according to a press release.
The team was formed after a seminar on agricultural insurance held at the premises of Capital Market Authority in the first half of 2016 with members from the Ministry of Agriculture and Fisheries and Oman Chamber for Commerce and Industry (OCCI).
Several representatives
The team is chaired by Capital Market Authority and includes representatives from the Ministry of Agriculture and Fisheries, OCCI, Oman Reinsurance Company and representatives of insurance companies.
The team so far conducted four meetings and the last one was on January 4, 2017 in which the types of insurance coverage needed by agricultural sector in Oman was discussed for mitigating the impact of risks the agricultural activities are exposed to.
The team also discussed the challenges and obstacles facing insurance companies in providing coverage for the crops and agricultural activities, livestock and fisheries.
While the idea of agricultural insurance is new to the Sultanate, the team acquainted with the experience of certain countries with long experience in this field.
Data and information
The team has obtained data and information required to prepare detailed study on the possibility of applying for agricultural insurance and the visions of insurance companies to provide coverage for the agricultural sector.
The study included work plan to educate the farmers to improve their management and financial performance. The Ministry of Agriculture will prepare a concept to prepare and urge the farmers to accept and adopt the idea of agricultural insurance as well as gradual application through requirements on comprehensive insurance. The team coordinated with the officials of the Ministry of Agriculture to obtain more data and statistics to complete the study, which include type of coverage, expected premium, settlement method and payment of claims.
The team will complete the study in the first quarter of 2017 and will discuss it in detail with the Omani Agricultural Association for their feedback before submitting it to the authorities.