Barbados moves towards parametric insurance for farmers and seeks their views

BRIDGETOWN, Barbados. The Barbados government is moving to establish an agricultural insurance framework and is urging farmers and commercial agricultural producers to take part in a survey.

The Ministry of Agriculture, Food and Nutritional Security said the feedback would help ensure farmers’ experiences, needs and concerns are reflected in the policy. All information collected will remain confidential.

How it would work

The proposed model is parametric insurance, which differs from traditional indemnity-based cover.

“Traditional insurance generally requires losses to be assessed and verified before compensation is paid, a process which can sometimes take months,” the ministry said.

“Parametric insurance, however, is triggered when predetermined conditions are met, such as specified rainfall levels or wind speeds associated with a weather event.”

Eligible policyholders could receive payouts once the agreed trigger is reached, without the need for traditional loss assessments or verification.

“This can significantly reduce the time between a qualifying event and payment, helping farmers access financial support and restart operations more quickly,” the ministry said.

Call to farmers

The survey is aimed at both farmers and commercial agricultural producers, whose responses will feed into the design of the new framework.

The ministry urged “all farmers and persons engaged in commercial farming activities in Barbados to participate in the survey and have their voices included in this important process”.