Banana, Plantain Growers Get Boost From New Crop Insurance Plan

A groundbreaking insurance initiative aimed at safeguarding banana and plantain cultivators from severe weather conditions has been inaugurated in Saint Lucia. This innovative program, launched on July 18 through the Regional Economic Agri-Insurance Programme (REAP), marks a first for the Caribbean Community (CARICOM). So, what are its operational mechanics? Payments will be based on satellite data, complemented by government-subsidized premiums. Initially, the Saint Lucian government has allocated EC$1 million to underwrite premiums, alleviating farmers’ immediate financial burdens. However, payouts will initially flow to the government, triggered by satellite observations of storm damage, before being redistributed to affected farmers. This satellite-centric model, unlike conventional insurance reliant on on-site assessments, activates automatic policies when specific weather criteria are met. Damian Bowen of Lynch Insurance Brokers confirms the long-term objective is transitioning full risk to the private sector. Meanwhile, enrollment strategies for participants will soon be determined, with two potential pathways under review. Interest in replication is emerging from neighboring nations.