ArmInfo.An agricultural risk insurance system is introduced for the first time in Armenia.
The press service of the RA Agriculture Ministry told ArmInfo that insurance market specialists, agricultural production experts, damage assessment experts, agronomists, graduates from agricultural educational institutions, agricultural consultants, financial institutions and other stakeholders will become the particiapants of the revolutonary agriculture program.
To become a member of the program, onwe must complete a training course to obtain the appropriate certificate of agricultural damage insurance. Classes will be held from February 25 to February 27, 2019 at the National Agrarian University of Armenia. Participation in the course is free. Upon completion of the course, an exam will be held, according to the results of which certified participants will have the opportunity to cooperate with insurance companies in Armenia. Applications are accepted until February 20, 2019. Earlier, ArmInfo, citing data from the Ministry of Agriculture, reported that the German KfW bank allocated a grant of 5.3 million euros for the implementation of a pilot program for the implementation of agricultural insurance in the agriculture. 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 go to cover the costs associated with consulting. The Government of Armenia 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. A consortium consisting of three companies will handle consulting.
Together with these companies, the Ministry of Agriculture and the Central Bank are preparing the first pilot project on agricultural insurance in Armenia. 1.9 million euros will be allocated for the establishment of NARMA- National Agroinsurance Risk Management Agency, the retraining of personnel and the formation of an institute of an appraiser, the development of by-laws and the services of a consulting company. The Agency will be the tool by which the consequences of natural disasters will be evaluated. 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, the insurance will concern fruit and vegetables, as well as crops.
Insured risks will possibly include damage from hail, and later from freezing and drought .