Protecting farmers from natural, climatic and biological perils

Representing 10% of Morocco's GDP, agriculture employs a substantial fraction of the country's labour force in rural areas. Cereal crop production dominates Morocco’s arable land, and it is heavily dependent on rainfall. More than 90% of the cultivated crops are grown under non-irrigated conditions.

Morocco has become a hot spot for extreme weather-related events. The country regularly suffers from events such as floods and concurrent heatwaves and droughts that have caused severe water crises. As Morocco suffers another drought year in 2024, the agriculture sector is being hit particularly hard, which is why farmers' incomes and financial strength continue to be tested.

In 2011, a nation-wide multi-peril crop public-private partnership scheme was launched, featuring a ‘hybrid product’ between indemnity- and index-based insurance. Swiss Re is part of the reinsurance panel of this scheme.

The solution measures the annual yield and compares it to the 10-year annual average. Should that annual yield fall below the 10-year average, then damages are assessed at a farm-level.

Farmers can subscribe on individual, voluntary and annually renewable basis and receive a premium subsidy (of up to 90%) from the Government of Morocco. Subsidised premiums vary significantly, depending on the agricultural zone the farmer is located in and the size of insured land.