Agricultural insurance contracts show 3-fold increase in one year 

ArmInfo.A total of 1,345 insurance contracts were signed in Armenia under the pilot  agricultural insurance programme, with 4,300 contracts signed this  year, Ira Panosyan, Head of the Department of Agricultural Programs  Elaboration, Resource Use and Cooperative Development, RA Ministry of  Economy, told reporters. 

The programme was launched in a few regions, with only two crops  covered. A present, 11 crops are involved in the program throughout  the country. 

In 2020, a total of 2,300 hectares were insured, with 5,830 hectares  insured this year, which is a commendable fact, Ms Panosyan said. 

"It is an important factor, as it is a new product and farmers`  confidence is in question. This is evidence the product is a success.  We are following the entire process - from the signing of insurance  contracts to payment of indemnity - to improve the programme and work  out products to meet farmers` demands," she said. 

Shogher Poghosyan of the Agricultural Insurers National Agency (AINA)  noted that the insurance premium plan has been over-fulfilled this  year. Three insurance companies collected insurance premiums to the  total amount of AMD 475mln, with insurance payouts reaching AMD  320mln.  Next February the RA Ministry of Economy will announce  changes in the agricultural insurance programme, with more crops to  be put on the list. 

The pilot agricultural insurance programme was launched in six  regions of Armenia in September 2019.  The companies (Rosgosstrakh,  Sil Insurance and Ingo Armenia) started selling their insurance  policies early in 2020. The government subsidies range from 50 to 60  percent depending on the risks, with a 10% discount in effect for  comprehensive insurance. The Swiss Re. (Switzerland) is reinsurer  under the programme.  

Under the programme, AINA is to develop standard agricultural  insurance products, sets the terms and conditions for government  subsidies, do market research and actuarial calculations, conduct  training and refresher courses for insurance appraisers and supervise  the partner insurance companies.  The Central Bank of Armenia (CBA),  financial regulator under the programme, intends to expand the  programme in terms of both crops and risks. At present, companies are  insuring apricot, apple, and pear orchards, vineyards, spring- and  autumn-planted cereals. Among the risks are hails, freeze and fires.