Number of beneficiaries of agricultural insurance in Armenia exceeded  the the entire 2020 indicator 

ArmInfo.The number of beneficiaries of the state agricultural insurance program in Armnia, according to the latest data, has reached 4,300, while for the entire  2020, 1,500 contracts alone were concluded between farmers and  insurance companies. Head of Department of Agricultural Programs  Elaboration, Resource Use and Cooperative Development of the RA  Ministry of Economy Ira Panosyan informed about this.

"This is quite a joyful fact, considering that agricultural insurance  is a new culture in the agricultural sector in Armenia," she  stressed.

According to the representative of the Ministry of Economy, the  majority of beneficiaries are from Shirak, Lori, Ararat and Armavir  regions, and the most popular crops are grain, apricot and grapes.  "Initially, the program provided only 2 crops and 2 types of risks,  but every year we revise the program, and we will further expand it  both in terms of risks covered by insurance and in terms of the list  of crops," said Panosyan. In total, she said, at this stage, farmers  can insure 11 crops against three types of risks: hail, spring frosts  and fires.

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 sale of IC  policies began in early 2020. The purchase of an insurance policy is  subsidized by the state in the amount of 50-60% depending on the  natural risk, and there is a 10% discount in the case oh full  insurance. The reinsurer is a Swiss Re company. The Agricultural  Insurers National Agency (AINA) is responsible for: development of  standard agricultural insurance products, conditions and regulation  of the state subsidizing process; market research and actuarial  calculations; training and professional development of damage  assessors; control over partner insurance companies.  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  work in the segments of insurance of apricot, apple and pear  orchards, vineyards, spring and autumn crops of grain crops, and  hail, frost and fires are defined as insurance risks.