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.