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.
