ArmInfo. The government should reinsure the risks of insurance companies participating in the agricultural insurance program. Garnik Petrosyan, former deputy minister of agriculture, candidate of agricultural sciences, expressed a similar opinion during an online press conference organized by the Club of Economic Journalists.
He explained that Armenia, being in difficult terrain conditions, falls under the influence of climatic cataclysms, which is manifested by frequent and abrupt weather changes. In this regard, the expert noted that the risks are sufficiently outlined and complex. Therefore, insurance companies, as Petrosyan continued, are not particularly concerned about the area. And the government in this regard needs to reinsure the risks of insurance companies, since being in adverse conditions, the latter may go bankrupt and cease operations. <Agricultural insurance should be carried out exclusively in a trilateral format - the state- farmer-insurance company>, the former deputy minister noted.
At the same time, he added that as of now the process is not n due level, since only expenses were insured. "However, there is a need for at least partial income insurance, which would give strong guarantees to the farmer that he will be able to continue his activities next year," Petrosyan said.