Armenian PM discussed issues of introduction of agricultural insurance in the country with international experts

ArmInfo. Prime Minister of Armenia Karen Karapetyan on February 7 deceived delegation led by Mathias Kiesler, Ambassador of the Federal Republic of Germany to the Republic of Armenia, composed of representatives of the German Development Bank (KfW), MF Strategy consultants, MicroInsurance Center and AgroConsulting and the reinsurance company Swiss Re and Agroinsurance International.

According to the press service of the Government, Karen Karapetyan thanked the government of Germany for assistance in the implementation of agricultural risk insurance. Presenting the reforms initiated by the government in the country's agricultural sector, the prime minister stressed that the goal of the Cabinet is to form an effective, reasonable agriculture, the main component of which is insurance of existing risks.  According to the prime minister, in order to reduce the risks of insurance companies, a pilot program for the establishment of anti-hail missile stations is currently being implemented. The head of the Cabinet expressed readiness to expand cooperation in other branches of agriculture.

The German Ambassador to Armenia, in turn, called the program of agricultural innovation insurance. At the same time, he conveyed the readiness of the German government to continue to assist Armenian colleagues in areas of mutual interest.  KfW representative Monica Gunther welcomed the policy of the Armenian government in implementing long-term, stable development programs in the field of agriculture. According to her, the German Development Bank is interested in deepening cooperation with Armenia and implementing long-term, promising initiatives. An exchange of views on the introduction of insurance for the Armenian agro-sector was held.  Earlier ArmInfo reported that the sale of insurance policies for agricultural risks insurance in Armenia may begin in late 2018 or early 2019. Armenian Deputy Minister of Agriculture Armen Harutyunyan stated this on December 19, responding to the question of ArmInfo. According to the Ministry of Agriculture, the German bank KFW will allocate a grant of 5.3 million euros for the implementation of the pilot program for the introduction of agricultural insurance in agriculture. Of these, 4.8 million euros will be used solely to subsidize the purchase of insurance policies. The remaining amount of 515 thousand euros will cover the costs associated with consulting. The Armenian government, represented by the Ministry of Agriculture, will co-finance the program in the amount of 5 million euros. The Climate Investment Funds will also provide 2 million euros, of which 200,000 euros will be spent on subsidizing the purchase of insurance policies, and 1.8 million euros for consulting services. Consulting, according to the representative of the Ministry of Agriculture, will be engaged in a consortium, which consists of three companies. Together with these companies, the Ministry of Agriculture and the Central Bank of Armenia will prepare the first pilot agricultural insurance project in Armenia in 2018, within the framework of which it is planned to set up the National Agroinsurance Risk Management Agency for National Agricultural Risk Management (NARMA).  The creation of the Bureau, the retraining of personnel and the formation of the institution of an appraiser, the development of by-laws and the services of a consulting company will be allocated 1.9 million euros.  The Bureau, according to Harutyunyan, will become the tool by which the consequences of natural environmental disasters will be assessed. An institute of damage appraisers will be established, the main insurable risks will be selected. NARMA will also develop insurance products. As Arutyunyan pointed out, at the initial stage, insurance will affect fruits and vegetables and grain products. Covered risks in the first stage may include damage from hail, and then, perhaps, from frost and drought.  In 2014, the concept of agro capitalization for Armenia and Georgia  KfW has been more than 400 thousand. euro. Today, tell me  the  results of the work, completed in September 2015, and the consulting  firm BFC Armen Harutyunyan said that it was have been disclosed to  insurance brokers, and are also offered in a cost effective way - by indexed or otherwise valued at the end of the preceding period. There  is also a recommendation that any statutory act will not be able to  apply for agroinsurance . The only thing you can do is to have a  system of support for the system - the state subsidy, the voluntary  insurance or the obligatory insurance. There are also companies that  are stuck in the system of firefighters.