ArmInfo. Up to this day no memorandums with insurance companies about the start of the program agricultural insurance in Armenia have been signed, member of the Agricultural Alliance and Advisor to the Executive Director of "Nairi Insurance" IC Artak Martirosyan said, recalling the report previously published by the Ministry of Agriculture that the sale of insurance policies of agricultural risks in Armenia may begin at the end of 2018 or early 2019.
He told about it during the recent press tour to the Ararat region, which was held in the framework of the program "Policy of collective participation - sustainable agriculture", funded by the EU under the program "Commitment to a constructive dialogue."
In an interview with ArmInfo, A. Martirosyan noted that in the global aspect there are two key problems, due to which the introduction of agricultural insurance is delayed. "First of all, there is no complete vision of the possible risks and losses resulting from them. At the same time, there are no mechanisms for assessing the damage to agriculture. "he explained. According to the expert, the aforementioned issues are among the topics discussed by the Central Bank and the KfW German development bank for launching a program to implement the agricultural insurance system.
A. Martirosyan, in particular, spoke about the experience of Nairi Insurance IC in the participation in the pilot program of the Ministry of Agriculture for cattle insurance, which started in March 2017 and lasted exactly one year. "All participants of the Armenian insurance market were invited to the meeting. A tender was announced, in which the winner would be the company offering the lowest tariffs," he added, noting that only three out of 6 insurance companies operating in Armenia agreed to take part - Nairi Insurance , Rosgosstrakh Armenia and INGO Armenia. "It is noteworthy that it is cattle insurance that contains the lowest risks in itself. But as it turned out, exactly half of Armenian insurance companies, even taking this into account, were not ready to start agro-insurance and take on these risks," the expert said. The total cost of the program, which was financed by FAO, was $ 3 million. At the same time, A. Martirosyan expressed readiness on behalf of Nairi Insurance to extend the program if it collected about 225 head of cattle as a year earlier. "Participation in the pilot program allowed us to understand the nuances, risks, which insurance companies may face, consider different cases and find solutions. 32 farmers took part in the pilot - 18 men and 14 women. During the pilot insurance program refunds were paid in 4 cases, "he said. Considering that the Nairi Insurance is a member of the Agricultural Alliance, A. Martirosyan noted that the company is interested in participating in the agricultural risk insurance program and in other areas of the agricultural sector.
To note, during the press tour, the journalists visited the community of Shahumyan in the Ararat region, where a meeting of the beneficiary farmers of the pilot program with experts took place. After that, they visited Khor Virap consumer cooperative in Small Vedi community, the chairman of which spoke about the successful cooperative experience with the introduction of drip irrigation technology and hail plants.
According to the Ministry of Agriculture, the German KfW Bank will allocate a grant of 5.3 million euros for the implementation of a pilot program for the implementation of the agricultural insurance system in Armenia. Of these, 4.8 million euros will be used exclusively to subsidize the purchase of insurance policies. The remaining amount of 515 thousand euros will cover the costs associated with consulting. The RA Government represented by the Ministry of Agriculture will co-finance the program in the amount of 5 million euros. Climate Investment Fund will also provide 2 million euros, of which 200 thousand euros will be used to subsidize the purchase of insurance policies, and 1.8 million euros - for consulting services. Consulting will be handled by a consortium consisting of three companies. Together with these companies, the Ministry of Agriculture and the Central Bank will prepare in 2018 the first pilot project on agricultural insurance in Armenia, within the framework of which it is planned to establish the National Agricultural Risk Management Agency (NARMA) Office. 1.9 million euros will be allocated on the establishment of the Bureau, retraining of personnel and the formation of the institute of the appraiser, the development of secondary legislation and the services of the consulting company. The bureau will be the tool by which to evaluate the consequences of natural environmental disasters. An institute of damage evaluators will be set up, the main insurable risks will be selected. NARMA will also develop insurance products. At the initial stage, according to the Ministry of Agriculture, insurance will affect fruit and vegetable and grain products. Covered risks at the first stage, probably, will include damage from hail, and then, possibly, from frost and drought. In July of this year the Ministry of Agriculture reported that since the beginning of 2019 it is planned to implement pilot agricultural insurance programs in Armavir, Ararat and Shirak regions.