June 1, 2021

Partnership to study feasibility of freshwater aquaculture insurance services in Cambodia


Forte Insurance (Cambodia) Plc will work with civil society organisations in Cambodia to study the feasibility of providing freshwater aquaculture insurance services in the country.


Forte Insurance, Commercialisation of Aquaculture for Sustainable Trade (CAST) and the Syngenta Foundation for Sustainable Agriculture will sign a feasibility study agreement on June 3, according to a joint press release issued on May 28.


Scheduled to be conducted from the date of signing through to October next year, the first-of-its-kind study will look at current production and risk management challenges facing farmers, and its findings could potentially help develop an appropriate insurance product, the release said.


Forte Insurance group CEO Youk Chamroeunrith told The Phnom Penh Post on May 31 that the scope of insurance coverage extends beyond the services and industrial sectors, to agriculture.


"Climate change is radically remaking the world and is having a major impact on organic fish farming and vegetable growing," he said.


Depending on location and season, aquaculture systems may be vulnerable to the consequences of climate change, which disrupt weather patterns and alter the predictability of water availability, quality and accessibility.


Aquaculture is a growing part of Cambodia's agriculture economy, employing about six million people, mostly smallholder farmers, and contributes 2.4% of the nation's gross domestic product (GDP), the latest Fisheries Administration data showed in 2018.


Chamroeunrith said: "We are studying the ways in which we could potentially extend a hand to the agricultural sector by providing insurance services and thereby transferring farmers’ risks to insurance companies."


- The Phnom Penh Post