Finrating ArmInfo: Results of the first year of agricultural  insurance have been summed up

ArmInfo.Armenian insurance companies registered the first results of agricultural risks insurance - for 2021. According to the quarterly Financial Rating of Insurance  Companies of Armenia, prepared by the Financial Analysis Service of  ArmInfo IC, in 2020 the country's insurers participating in the  agricultural insurance program collected premiums totaling 130,946.0  thousand drams.  

Of this amount, 82.2% or 107.6 million was directed  by companies for risk reinsurance services.  For the reporting period  the amount of premiums collected by Rosgostrakh Armenia was 73.6  million, 35.4 million by INGO Armenia, and 21.9 million by Sil  Insurance.

The amount of compensation for the reporting period amounted to AMD  151.843.0 thousand, of which Rosgostrakh Armenia reimbursed AMD 94.4  million, INGO Armenia - AMD 42.9 million, Sil Insurance - AMD 14.5  million. The agricultural insurance market is still limited by the  participation of these three companies.

To note, by the beginning of 2021, the companies did not have valid  contracts, except for one from Sil Insurance. The obligations on them  have been fulfilled. So far, as can be seen from the companies'  reports, the segment of agricultural insurance for market players  remains unprofitable.  It should be noted that the financial  regulator, represented by the Central Bank of Armenia, intends to  gradually expand the agricultural insurance program both in terms of  covering a wider range of agricultural crops and risks falling under  insurance. In the meantime, the companies worked in the segments of  insurance of apricot, apple and pear orchards, vineyards, spring and  autumn crops of grain crops, and hail, frost and fires were  identified as insurance risks.

To recall, the agricultural risks insurance program started in  Armenia in fact from September 2019 and is still working in a pilot  mode, covering six regional regions of Armenia. The insurance  companies launched the sale policies at the beginning of last year.

The purchase of an insurance policy is subsidized by the state in the  amount of 50-60% depending on the natural risk, and with full  insurance there is a 10% discount. The reinsurer is a large Swiss  company Swiss Re. The National Agency of Agricultural Insurers (AINA)  was created, which is responsible for:  development of standard  agricultural insurance products, conditions and regulation of the  state subsidies process; market research and actuarial calculations;  training and professional development of damage assessors; control  over partner insurance companies.