Agricultural insurance system introduced in Armenia for the first  time

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 .