ArmInfo. First Deputy Minister of Agriculture of Armenia received Bruno Sforni, Executive Director of the Italian reinsurance brokerage company Bruno Sforni S.p.A.According to the press service of the Ministry of Agriculture, Bruno Sforni presented in detail the activities of the company he headed, in particular, experience in the field of insurance of agricultural risks. He expressed interest in participating in the program of introducing agro-insurance in the Republic of Armenia and readiness to contribute, in particular, by providing consulting, exchanging experience, and also implementing risk reinsurance in the agricultural sphere.
According to him, the program for the introduction of agricultural insurance is developed professionally.The head of the Ministry of Agriculture of Armenia, in turn, noted the importance of implementing the program in view of various, including indirect, positive effects of implementation. It was stated that the program in pilot mode will be implemented in 6 regions of Armenia, at the initial stage the insurance will affect fruits and vegetables - apricots and grapes. Insured risks will be hail, freeze and fire.
The program has already become interested in 3 local insurance companies, the world's largest Swiss company "Swiss Re" will reinsure.Bruno Sforni S.p.A is one of the oldest brokers in Europe, more than 100 years old. In Italy, it is the largest broker working with all types of insurance, services for which in the future it is planned to provide to Ukrainian companies. In addition, in Italy, the company has an underwriting agency, which also deals with surveyors.In late February, answering the question of ArmInfo, RA First Deputy Minister of Agriculture Gegham Gevorkian said that for the first time in Armenia, the agricultural risk insurance program was launched, but still in pilot mode. Then it was stated that the project is being carried out in pilot mode in 5 regions of Armenia - in Ararat, Armavir, Vayots Dzor, Tavush and Aragatsotn. About half a billion drams will be allocated for financing the program.
State subsidies will amount to 60-65% of the cost of the insurance policy, and the farmer will have to pay 30-35 thousand drams per 1 hectare. The process of concluding contracts has already started, and the insurance companies involved in the process will deal with the sale of insurance policies. In mid-February, it was announced about the start of training courses for obtaining an appropriate certificate of agricultural damage insurance. 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 of Armenia. At the same time, Gegham Gevorkian refrained from calling those insurance companies that have documented their desire to cooperate with the Ministry of Agriculture in the framework of the agricultural insurance program. The Deputy Minister laid this "mission" on the shoulders of insurance companies, which may themselves announce their participation in the program in the coming days.According to the Ministry of Agriculture, the German KfW bank should 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. The principal amount of a grant of 4.8 million euros should be directed solely to subsidize the purchase of insurance policies by farmers. The remaining amount of 515 thousand euros will go to cover the costs associated with consulting. At the same time, the RA Government represented by the Ministry of Agriculture will co- finance the program in the amount of 5 million euros.
Climate Investment Fund (Climate Investment Funds) 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 are preparing the first pilot project on agricultural insurance in Armenia. The establishment of NARMA, (National Agroinsurance Risk Management Agency National Risk Management Agency NARMA Bureau (the name, as Gevorgyan recently pointed out, was changed, but the functions remained the same), which will also develop insurance products, retrain personnel and establish an appraiser, develop by-laws and for the services of the consulting company EUR 1.9 million was allocated.