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.
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