Strengthening Climate Resilience: Cambodia's First-Ever Vegetable Insurance Initiative

Late last month, iDE Cambodia, in collaboration with the (Former) Syngenta Foundation for Sustainable Agriculture and insurance company Forte Insurance (Cambodia) Plc , hosted a workshop in Siem Reap Province, gathering all the concerned stakeholders under the project, to reflect on the results of a dry-run test for the country’s first-ever commercial weather index insurance for vegetables. The event brought together farmers, implementing partners, and representatives from farmer organizations such as the Melon Association Siem Reap Meanchey (MASC), as well as representatives from the Departments of Agriculture, Forestry, and Fisheries (PDAFF) from Siem Reap, Banteay Meanchey, and Oddar Meanchey Provinces. The workshop aimed to gather feedback and assess the initiative’s successes and areas for improvement. Insights gained will be documented as lessons learned, alongside recommendations from the three-year implementation of this pioneering vegetable insurance program for semi-commercial and commercial farmers in Cambodia that can be shared to benefit the sector.?

As part of the @New Zealand Ministry of Foreign Affairs & Trade funded CSmart project, iDE and the Syngenta Foundation conducted a feasibility study on vegetable insurance in early 2022. The study identified risks caused by pests, diseases, market price fluctuation, and climate stresses such as high temperatures, prolonged rain, and flooding, all of which can severely impact crop production. Three main crops—cherry tomatoes, sweet melons, and red and yellow-fleshed watermelons—were selected for testing commercial weather index insurance. These high-value horticultural crops are increasingly threatened by climate change, which presents Cambodian farmers with significant challenges, particularly due to the high costs of production. Many farmers participating in our project grow these crops commercially year-round. The study also found that this group of farmers is willing to purchase crop insurance.

The design of this weather index insurance was based mainly on two potential risks: high temperature and heavy rainfall. This led technical teams to implement tools for collecting weather data using satellite technology and automatic micro-weather stations installed at select production hotspots. The data generated informed the design of the insurance product, which were later scaled up, allowing around 100 farmers to enroll in the program by purchasing insurance for their respective crops. A crucial component of the program, the payout day, was designed to convey the results of the payout calculation to farmers and to engage them in detailed discussion on farmers’ actual loss experience and the rationale for payouts, while collecting feedback and recommendations for program enhancement.??

At the full morning reflection workshop following the presentations, participants were divided into four groups—farmers, project implementers, iDE’s agronomist team, and PDAFF and MASC representatives. This setup facilitated deeper discussions, allowing each group to reflect on the initiative and propose improvements that benefit both farmers and insurers. The role of PDAFF in supporting the potential vegetable insurance program was also explored.

One participant, Mr. Meas Piseth, a watermelon farmer from Banteay Meanchey Province, stated, "I now understand the duration of the insurance I purchased and why it covers that specific timeframe of the crop cycle. I can see there is a real payout for those whose crops are damaged by extreme weather under the terms and conditions of the insurance."

He added, "Given the increasing impact of climate change, I’m willing to purchase the insurance again, as it can help partially cover production costs in case of damage. However, I would greatly appreciate having access to a platform, possibly through a mobile app, that allows me to check weather information directly."

Dr. Seng Kim Hian, Program Director of Agriculture at iDE Cambodia, noted, "After three years of implementation, we’ve encountered unique challenges and significant findings around vegetable insurance for Cambodian farmers. We will prepare learning pieces to benefit the sector, which is crucial as Cambodia seeks climate risk mitigation and adaptation tools and strategies for farmers."

Mr. Ny Lyhoung, Head of Business Unit/CEO, Micro & Agriculture Insurance of Forte Insurance (Cambodia) Plc. mentioned that, “The dry-run test in collaboration with iDE Cambodia and Syngenta Foundation has proven that insurance is an effective tool for farmers to mitigate their weather related risks through the payouts farmers received from their insurance policy. This dry-run test is also a foundation for Forte to become more innovative in offering more suitable insurance products to cover more crops in the near future.”

According to the Ministry of Agriculture, Forestry, and Fisheries (MAFF), local farmers supply about 60–70% of Cambodia’s vegetable and fruit market, with the rest imported. As climate change continues, it is essential to strengthen farmers' resilience through diverse coping strategies while building a more sustainable agricultural market system.?

“In line with the Cambodian Government’s policy for growth, we are pleased to have supported our partners to study insurance products suitable for Cambodian farmers. We believe the insurance helps farmers cope with losses from extreme weather and other natural events beyond their control,” said Ms. Long Sophary, Agricultural Insurance Solutions Project Manager at the @Syngenta Foundation.