Within the framework of the Armenian-German partnership, the Central  Bank of the Republic of Armenia held a discussion meeting on the  topic of "Introduction of Livestock Insurance"

ArmInfo. Within the framework of the Armenian-German partnership, the Central Bank of Armenia held a discussion and discussion on the topic "Introduction of risk  insurance in the field of cattle breeding" on October 22.

According to the press service of the Central Bank of Armenia, ArmInfo was  informed that the German development bank KfW and the National Agency  for Agricultural Risks Insurers assisted in holding this meeting.  According to the press service of the Central Bank of Armenia,  ArmInfo was informed that representatives of the government, heads of  insurance companies, and livestock business entities attended this  meeting.

The main purpose of the meeting is to find out the possibilities of  introducing this class of insurance in Armenia with the help of the  best foreign experts in the field of livestock risk insurance. During  the meeting, a number of issues were discussed and proposals for  further steps were voiced.

It should be noted that the process of agricultural insurance starts  in Armenia. At the end of September 2019 RA Prime Minister Nikol  Pashinyan on his Facebook page expressed the idea that the  agricultural insurance mechanism should be streamlined, adjusted,  improved, but it should be tested in such a way as to understand its  strengths and weaknesses, according to the logic "where it's thin,  there torn. " He informed that at the first stage the insurance will  cover apricot orchards and vineyards, and that the risks covered by  the insurance are hail, fires and spring frosts.

Farms from Armavir, Ararat, Aragatsotn, Tavush, Kotayk and Vayots  Dzor regions will be insured against hail and fires, and farmers from  Armavir and Ararat will be able to insure against spring frosts. The  insurance coverage, as well as the agricultural crops that fall under  it, according to the information, will be expanded annually, "until  it covers all regions of Armenia." In addition, farmers will be able  to choose one of 5 insurance policies. The size of the insurance  premium will be determined on the basis of a risk assessment on a  particular land plot. So far, with any insurance package, 50% of the  amount of the insurance premium will be paid by the Armenian  government, and with full insurance, that is, simultaneous insurance  against all risks - hail, fire and frost, a 10% discount is expected.

The state within the framework of the agricultural insurance project  will subsidize 50% of the cost of the insurance policy (against the  previously called 60-65% - Ed.). Created by the National Agency of  Agricultural Insurers (www.aina.am). Until Agency partners are three  companies - INGO-Armenia, Rosgosstrakh Armenia and Seal Insurance.  They specify the internal mechanisms for the further servicing of  policies for this class of risks. A major Swiss company SwissRe will  reinsure agricultural risks as part of a pilot project. The first  insurance contracts are supposed to begin to be concluded in January  2020.  Let us remind that German KfW Bank allocated a grant in the  amount of implementation of the pilot program for the implementation  of the agricultural insurance system in Armenia

5.3 million euros. The main grant amount of 4.8 million euros was to  be used exclusively to subsidize the purchase of insurance policies  by farmers. The remaining amount of 515 thousand euros went to cover  the costs associated with consulting. In this case, the Government of  the Republic of Armenia represented by the Ministry of Agriculture  will co-finance the program in the amount of 5 million euros. The  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. A consortium of three companies will be  engaged in consulting. 1.9 million euros were allocated for the  creation of AINA, the retraining of personnel and the formation of  the institution of an appraiser, the development of by-laws and the  services of a consulting company.