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.
