As the Caribbean Community (Caricom) rebuilds from the devastation caused by Hurricane Beryl which wreaked havoc in five Member States, the region has collectively signed on to the Regional Economic Agri-Insurance Programme (REAP).
REAP is managed by Lynch Caribbean Brokers – a consortium of insurance companies that provide agricultural insurance for crop, livestock farmers and fisherfolk.
The new initiative allows agriculturists to safeguard and recover smoothly from the adverse effects of climate change and dangerous weather patterns such as drought, excess rainfall, pest infestation and fishery interruption among other climate disasters.
Managing Director of Lynch Caribbean Brokers, Damien Bowen
The insurance programme is facilitated through direct payouts to cover production costs and business interruptions, paving the way for business continuity.
REAP’s primary objective is to ensure financial resilience, bolster food security, and promote healthier dietary habits across the Region, which aligns with the key deliverables of the Caribbean Community’s Special Ministerial Task Force on Food Production and Food Security.
During the launch at the Arthur Chung Conference Centre (ACCC) on Friday, Managing Director of Lynch Caribbean Brokers, Damien Bowen disclosed that REAP leverages technology to transfer the risks of climate change from the public sector to the private sector.
“One of the fundamental functions of REAP is that the government is going to fund year one but equally we are developing parallel to that a funding mechanism that ensures the self-sustainability of the programme over time in reducing the burden on the state. We are going to leverage the power of our regional collective to bring the best price into the market and equally important is our leveraging of technology.”
Farm insurance gives farmers the peace of mind to focus on their business without worrying about potential risks and financial loss.
Bowen added that REAP’s database monitors weather conditions in insured areas by satellite stations to assess the extent of damages and promptly provide relief to agriculturists.
He added that this intervention allows governments to pump resources into policy decisions after environmental disruptions while farmers return to fields.
“The claims process is important and given that it is a parametric, it requires that our teams constantly monitor the satellite databases in the insured locations. The debts are calculated to define if the predetermined payment thresholds are met or if they have been surpassed… the coverages are then activated, payouts are calculated. Typically, payouts occur within a two-week to four-week radius maximum,” Bowen added.
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