Enhancing agricultural climate risk management: France’s 2023 crop insurance reformIn light of climate change and its dramatic consequences on agriculture, the French Ministry of Agriculture and Food Sovereignty has undertaken an extensive overhaul of climate risk management tools within the sector. This reform, enacted in 2023, aims to fortify farmers’ resilience against climate-related risks by bolstering harvest insurance development. In this perspective, the reform introduces a three-tiered risk compensation scheme. Tailored to the diversity of French agricultural productions, this system relies on a subsidised multi-risk climate crop insurance. For the most exceptional losses, this reform foresees complementary compensations to farmers through national solidarity. This reform also envisages supplemental tools that will eventually be implemented. Firstly, to simplify the process for farmers, a unified «single-window» approach is introduced. In addition to handling their own insurance claims, insurers will also manage the State financial interventions to insured and non insured crops. Finally, the reform builds a framework to establish a pool of reinsurance between companies offering multi-risk climate crop insurance.
After holding various positions within the French Ministry of Agriculture and Food Sovereignty in the fields of public agricultural policies and audit, Simon Tranchant is currently heading the unit responsible for risk management and crop insurance at the Directorate General of Economic and Environmental Performance of Enterprises within the ministry.