The new objectives of multi-risk crop insurance after the orientation law – Insurance

The orientation law modifying multi-risk crop insurance was adopted by Parliament and published in Official newspaper of March 3, 2022.

Its objective is to strengthen the resilience of French farms in the face of climate change by creating a universal risk management system, associating the State and insurance organizations and by encouraging the subscription of insurance contracts. Over the period 2023-2030, the public expenditure resulting from this new system is part of an annual financial envelope of 600 million euros.

Most of the technical provisions resulting from this orientation law will be taken by decree or by ordinance for an application provided for in 1er January 2023 (L. no. 2022-298, art. 1er). In the event of crop damage resulting from climatic hazards occurring before 1er January 2023, the provisions prior to the law will apply. Insurance contracts taken out before 1er January 2023 may be brought into compliance with the law, if the operator so requests before 1er April 2023. Failing this, the contract will be automatically brought into conformity when it is renewed and at the latest in the following year. If the conditions for the entry into force of the law are not met on 1er January 2023, a decree may postpone this date to 1er August 2023 (art. 17).

Possibility of combining insurance compensation and public compensation

The subscription to a crop insurance contract remains free. In the event of damage to harvests and crops due to climatic hazards, affected farmers receive insurance compensation if a multi-risk contract has been taken out and, in addition, compensation based on national solidarity. In the event of non-insurance, operators also receive compensation based on national solidarity (C. rur., art. 361-1, A, created by L. n° 2022-298,…

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