Wednesday, March 6 2019 20:26

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.