Cambodia Investment Review
Forte Insurance (Cambodia) PLC and The Nurture Project have signed a Memorandum of Understanding (MOU) on March 7, 2024, establishing a collaborative effort aimed at supporting smallholder farmers in Cambodia. This partnership focuses on the development and provision of crop insurance products designed to help farmers manage the risks associated with climate change.
The partnership signed was attended by Mr. Ny Lyhoung, Business Unit Head of Micro and Agriculture Insurance at Forte, and Mr. Winfried Suess, Team Leader of The Nurture Project. The collaboration brings together two organizations with a shared interest in enhancing agricultural resilience and sustainability.
The Nurture Project in Cambodia aims to build the resilience of 15,000 smallholder farming households to the impacts of climate change. Co-funded by the Swiss Agency for Development and Cooperation (SDC) and implemented by HEKS/EPER (Swiss Church Aid) and Caritas Switzerland, the project promotes climate-resilient agroecological farming systems, improves water governance, and advocates for policies that support climate adaptation.
Introducing The Weather Index Crop Insurance
Since 2014, Forte Insurance has been a leader in the agricultural insurance space in Cambodia, introducing the Weather Index Crop Insurance (WICI) and covering approximately 60,000 farmers. This initiative has positioned Forte as an inclusive business, recognized for its efforts in supporting economic development and social inclusion – accolades that include being named Cambodia’s Best Inclusive Business Company at the Sixth ASEAN Inclusive Business Summit in 2023.
Through this partnership, Forte Insurance and The Nurture Project aim to develop insurance products tailored to the specific needs of smallholder farmers in the areas where The Nurture Project operates. The intention is to provide farmers with financial products that can help them mitigate the financial risks of climate-related crop failures.
Reflecting on the partnership, Mr. Winfried Suess of The Nurture Project said, “This collaboration enables us to offer more targeted support to the farming communities we work with. By introducing insurance products designed around their needs, we’re helping to provide a safety net that can make a real difference in their ability to withstand changing climate-related challenges.”
Mr. Youk Chamroeunrith, representing Forte Insurance, highlighted the pragmatic aspects of the collaboration: “Our work with The Nurture Project is about creating practical solutions for farmers facing the real impacts of climate change. The insurance products we’re developing are intended to give farmers more confidence in their future, knowing they have support mechanisms in place to help them recover from losses due to adverse weather conditions.”
Address Key Challenges Faced By Cambodian Farmers
This partnership between Forte Insurance and The Nurture Project represents a focused effort to address some of the key challenges faced by Cambodia’s agricultural sector, particularly the vulnerabilities of smallholder farmers to climate variability. By providing access to tailored insurance products, the collaboration seeks not only to improve individual farmer resilience but also to contribute to the broader aim of sustainable agricultural development in the country.
As this partnership progresses, it will be closely watched by those interested in the intersection of agriculture, climate change adaptation, and financial services. The outcomes of this collaboration could offer valuable insights into effective strategies for supporting smallholder farmers in Cambodia and beyond.
