June 30, 2020

The keys to climate resilience

The Group’s expertise in parametric insurance, managed by AXA Climate, enables it to offer tangible solutions in sectors like farming that are directly impacted by climate hazards. AXA is drawing on its insurance business to help customers adapt to the impact of climate change.
Protecting what matters
4 minutes
What obstacles do farmers face?
Listening to the people who feed the planet

A lack of visibility

Geopolitical instability, changing regulation and the impact of climate hazards on yields, cause strong fluctuations in raw material prices. This means farmers have poor visibility over their future revenues, given their dependency on market prices.

A lack of investment

The agriculture sector is partially adopting innovations that could change the game. Two distinct farming worlds are forming: on the one hand, large farms with increasingly sophisticated practices, and on the other, small farms that are having trouble adapting.

Isolation in the face of complex regulation

Farmers require a whole host of complementary skills to succeed : finance, management, law, etc. Major food manufacturers, seed suppliers and cooperatives make advice and talent available to them, but these fragmented services often lack clarity.

Limited insurance coverage

Traditional insurance policies are struggling to cover the risks facing the farming sector :low insurance penetration rate in developing countries ; uncovered losses linked to natural disasters ; insurance contracts excluding certain legal entities (such as cooperatives) and types of crops.