Promoting Crop Insurance through PPP, a Collaborative Push for Climate-Resilient Agriculture in ASEAN – Mekong Institute (2024)

Promoting Crop Insurance through PPP, a Collaborative Push for Climate-Resilient Agriculture in ASEAN

ASEAN Member States (AMS) have made significant strides towards enhancing the resilience of their agricultural sectors by jointly developing recommendations for policy guidelines and capacity-building measures on crop insurance. This progress was highlighted at the Regional Technical Meeting on Climate-Resilient Crop Insurance in ASEAN through Public-Private Synergy, held on 15-16 May 2024 in Bali, Indonesia, where representatives from the ten AMS, the ASEAN Secretariat, and the insurance sector collaborated to produce actionable strategies aimed at fortifying regional agricultural resilience against the impacts of climate change.

Agriculture remains a cornerstone of livelihood in most AMS, yet it faces growing threats from extreme weather events such as droughts, floods, and storms, which have led to severe crop losses and economic instability for millions of smallholder farmers. The concerted effort to develop climate-resilient crop insurance represents a vital step towards safeguarding the future of ASEAN agriculture and enhancing the resilience of regional economies in the face of climate change.

Gathering 60 participants from related agencies across AMS, the two-day meeting delved into the feasibility and challenges of developing climate-resilient crop insurance solutions through public-private partnerships. They reviewed the current status of crop insurance in ASEAN, explored innovative models, and identified the capacity-building needs of stakeholders from upstream to downstream. The discussions emphasized the importance of cross-sectoral cooperation and knowledge sharing in advancing effective crop insurance schemes.

“Crop insurance plays a vital role in managing climate risks and protecting farmers against the adverse effects of natural disasters. By providing financial protection and enabling faster recovery, crop insurance not only supports sustainable development but also promotes food security and enhances the competitiveness of our agricultural economies,” said Dr. Pham Quang Minh, Head of Food, Agriculture, and Forestry Division, ASEAN Secretariat.

Mr. Hirman Abu, Special Senior Officials Meeting of the ASEAN Ministers on Agriculture and Forestry (SOM-AMAF) Representative from Brunei Darussalam, underscored the need for accessible and affordable climate-resilient crop insurance products for smallholder farmers. He stressed the crucial role of the private sector in insurance promotion and the necessity of capacity building for stakeholders to fully understand the benefits of insurance products.

Mr. Suriyan Vichitlekarn, Executive Director of Mekong Institute (MI), outlined the need for risk assessment, policy preparation, stakeholder consultation, piloting and transitioning to insurance schemes, and expanding existing schemes. He also emphasized the importance of campaigns, systematic support systems, and strategies for sustaining insurance schemes without relying on subsidies.

Key takeaways from the meeting include the recognition of crop insurance as an essential tool within a broader strategy for sustainable and resilient agriculture. Participants called for the integration of agriculture insurance into national policies, regional knowledge sharing, and technical cooperation. They also pointed the need to link insurance with sustainable agricultural practices and to include agriculture insurance as a crucial component of the post-2025 ASEAN Vision.

The meeting was jointly organized by two major initiatives: the Promotion of Crop Insurance in ASEAN through Public and Private Partnership (PPP) Project, commissioned by the Japan ASEAN Integration Fund (JAIF) and implemented by Sanyu Consultants Inc., Japan and MI; and the Innovative Climate Risk Financing for the Agricultural Sector (AgriCRF) in the ASEAN Region, commissioned by the German Federal Ministry for Economic Cooperation and Development (BMZ) and implemented by the Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ) GmbH.