Logo of Phnom Penh Post newspaper Phnom Penh Post - Agriculture insurance a hard sell

Agriculture insurance a hard sell

Agriculture insurance a hard sell

About a year after offering the country’s sole agriculture policy, Forte Insurance is struggling to sell coverage.

“We still need time to get farmers to understand the benefits of agricultural insurance,” said Youk Chamroenrith, director and general manager of Forte. “We have four clients signed up with us now. I can say for now it is not going smoothly yet.”

Chamroenrith expects that the new policy will find more clients in the next few years as awareness catches on among farmers.

“Agricultural insurance helps secure their financial situation when their crops in the plantations are destroyed by either fire or natural disaster,” he said.

Farmers across the country were powerless to stop their fields from being damaged by flooding during last year’s rainy season. As a result, many went into debt.

The company calculates prices based largely on the size and age of the land under cultivation. So far, Forte covers rubber, cassava and maize crops.

Though the Insurance Association of Cambodia says companies are seeking the necessary licenses to follow Forte, no one has taken the leap, mainly because customers aren’t interested.

“Farmers often view insurance as an unnecessary expense rather than an investment to curtail future risk, especially with small-scale farming operations,” said Michael Girling, acting CEO of Infinity Insurance.

Girling also said that while Infinity doesn’t offer the coverage, it has potential to grow in Cambodia.

Ty Atith, deputy general director of the insurance association, said the product will catch on as the sector expands.

“It’s a good sign for insurance when a new product is introduced to the market. We have never had this agricultural insurance before,” he said.

MOST VIEWED

  • Chinese nationals on the decline in Sihanoukville?

    It is no secret that real estate prices in Sihanoukville have been on the rise over the last few years due to the influx of Chinese nationals. Their arrival has brought investment in the real estate, construction, hotel and casino sectors, as well as small

  • PP massage parlours raided, 29 suspects held for prostitution

    The Phnom Penh municipal Military Police on Sunday raided four massage parlours in Por Sen Chey district and detained 29 suspects for questioning over their alleged involvement in prostitution. Deputy municipal Military Police commander Pu Davy on Monday said the four massage parlours were located near

  • PM: All 10 Asean countries to receive Rainsy arrest warrants

    Prime Minister Hun Sen said on Thursday that all 10 Association of Southeast Asian Nations (Asean) member states will receive warrants for the arrest of Sam Rainsy. The warrants have already been sent to Laos and Thailand. He was speaking at a joint press conference at

  • Overtourism still threatens Angkor Wat

    Ticket sales to the Angkor temples are down. An Angkor Enterprise report has revealed that ticket sales to the Angkor Archaeological Park dropped by more than 11 per cent from the same period last year. Prime Minister Hun Sen isn’t concerned. He told journalists that