The insurer Groupama faced with changes in contracts and climatic hazards

From 2023, all farmers will be able to benefit from universal coverage for the most serious climate risks, and for other risks, access to insurance will be greatly facilitated” announce the Minister of the Economy, Bruno Le Maire, and the Minister of Agriculture, Marc Fesneau, this Wednesday, September 14 at the end of the Council of Ministers*. After the recent arbitrations of the President of the Republic (in particular the application of omnibus: multi-risk climate insurance subsidized at 70%, trigger threshold and excess set at 20%), “the wine sector welcomes a fair and balanced insurance tool” in a press release from the General Association of Wine Production (AGPV), but “pleads for a rapid revision of the historical reference”because “the renewed attractiveness of the system will only be complete with the essential and urgent revision of the method for determining the historical reference “. In this regard, the vineyard wants to be able to calculate the Olympic average of its yields on the only vintages without climatic hazards, so that the guaranteed volume is not reduced to a trickle.

Faced with these requests, how does the leading agricultural insurer, Groupama (7,277 contracts in the vineyard for 112,029 hectares insured in 2022) react? “The Olympic average makes it possible to understand the evolution of the average production potential per crop. In recent years, this average has been on a downward trend, reflecting a decline in the production potential of many crops. analyzes Pascal Viné, the director of institutional relations for the Groupama group.

Structural decline

Reform the method of calculation “is delicate, because it falls within the framework of the international agreement on agriculture of the World Trade Organization (WTO) signed in Marrakech in 1994. The law of March 2, 2022 relating to the reform of risk management, in its article 20, indicated that a government report would be submitted to Parliament on this subject within six months. adds Pascal Viné, adding that “Groupama considers that this question must be dealt with within the CODAR (Commission in charge of the Orientation and Development of Insurance guaranteeing the damage caused to Harvests), but that in no case can insurance compensate for the structural decline in the production potential. It is then necessary to consider complementary approaches relating to prevention or adaptation. (as with the development of photovoltaic shelters against drought and hail or SMS alert tools in the event of frost).

53% of disaster victims in 2022

“In insurance, it is the claims that make the premiums. The economic balance is therefore directly linked to the importance of these and our collective ability to compensate them. specifies Pascal Viné, adding thatin all cases, it will be necessary to ensure the financial balance of the compensation scheme. The sustainability of the reform depends on it. Let’s not forget that this imbalance is one of the causes of the failure of the previous system. » If the year 2021 had been marked by a high loss rate (90% of the winegrowers insured by Groupama were frozen), the 2022 vintage remains marked by numerous climatic damages: out of the 7,300 contracts signed in the vineyard in 2022, they are 3 900 to report a claim (i.e. 53% of policyholders) on 63,400 hectares affected (56% of insured areas), with hail (38% of files), frost (27%) and drought (27%) reports Nadia Roignant Creis, the agricultural director of Groupama. With the new insurance system and its national solidarity tool, “The State will bear the consequences of the most serious disasters. This is very important to ensure the viability of the device” points out Pascal Viné, noting that “For our part, we continue to campaign for the creation of a group of insurers, as in Spain, in order to pool the risks as widely as possible and therefore to make the system permanent. »

*: The ministers ratifying the bill ratifying Ordinance No. 2022-1075 of July 29, 2022 on the development of climate risk management tools in agriculture.

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