As climate change persists, European agriculture encounters mounting challenges. Shifting weather patterns, including droughts, heatwaves, frosts, hailstorms, and heavy rainfall, are transforming the agricultural landscape. Heatwaves have swept across parts of Southern Europe and have placed immense stress on crops and livestock. Innovative strategies, including shade structures, precision irrigation, and the selection of heat-tolerant crop varieties, have become essential to reduce crop losses in the production of specialty crops such as pome fruit. Erratic spring frosts especially in Central and Northern Europe, including Germany, have endangered early budding crops and led to annually recurring damage especially to specialty crops such as grapevines, pome and stone fruit. Wind machines and frost blankets have stood guard against these adverse weather conditions. Certain regions have experienced increased heavy rainfall, leading to waterlogged soils and an elevated risk of flooding. However, putting countermeasures in place is far from straightforward. Effective mitigating action usually requires a large degree of planning, effort and expense that many farmers cannot afford.
In response to the heightened risks posed by extreme weather events, the insurance industry is adjusting pricing. Inflation is further impacting the insurance costs for agricultural assets. To fortify crop resilience in the medium to long term, collaboration between growers and insurers is indispensable. For example, farmers who adopt sustainable crop rotations may experience reduced insurance premiums. Precision farming, employing technologies including soil sensors and drone imagery, provides valuable insights for both farmers and insurers.
Plant breeders play a crucial role in developing varieties resistant to climate stressors, enabling farmers to choose crops adapted to local conditions. Geocoded data from precision farming is increasingly important for insurers, facilitating accurate risk assessment and pricing. This data is also vital for the development of parametric products, which offer swifter and transparent compensation for extreme weather events.
Advanced technologies, including predictive analytics and AI-powered tools, empower farmers to make informed decisions about crop production. They also assist insurers in conducting risk assessments within the agricultural sector, thereby refining their risk management strategies and facilitating the creation of tailored insurance products. At Genillard & Co., we collaborate with top-tier tech companies in data collection and analysis, leveraging custom neural networks to develop insurance products in conjunction with insurers and reinsurers. Through comprehending regional nuances, advocating for adaptive measures, and harnessing cutting-edge technologies, we endeavor to bolster the future of European agriculture. This involves bridging the insurance gap and enabling farmers to cultivate crops more resilient to changing climates. Together, we navigate the intricacies of this new climate reality, in order to help secure the sustainability of European agriculture for future generations.
For more information about the Risk Management and Reinsurance Solutions offered by G&Co please contact us.