ArmInfo. Currently, insurance is applied in Armenia for 13 types of plants under four types of risks. This was announced at a press conference on March 28 by Ira Panosyan, Head of the Department for the Development of Agricultural Programs of the RA Ministry of Economy.
According to her, from 2020 to 2023, there was an increase in the dynamics of 28 agricultural insurance programs. Thus, if in 2020 farmers concluded 1,546 crop insurance contracts on an area of 2.5 thousand hectares, then in 2023 this figure increased to 10 thousand contracts covering 11 thousand hectares of land. Nevertheless, as the head of the department noted, a high level of damage was noted during the specified period, as evidenced by the fact that farmers received about 2.5 billion drams in insurance payments against 1.5 billion drams of damage incurred. As a result, Swiss reinsurer The Swiss Re Group announced its intention to temporarily withdraw from the program in 2024.
Considering that this program is very important, Panosyan noted, the government, noting serious global climate changes, decided to fully assume the role of reinsurer of agricultural risks from 2024. This project, in which the state's share has been significantly increased, will continue in 2025. If 65-70% of insurance payments were subsidized until 2025, then from this year 75-80% of insurance payments will be subsidized. This is an unprecedented volume, which is rarely used in any country. At the same time, the names of products subject to insurance have been significantly increased. If last year, apricot and grape harvests were not involved in this process, then in 2025 they will be insured.
Earlier, ArmInfo, citing RA Minister of Economy Gevork Papoyan, reported that even if the damage to the crop exceeds 200%, farmers will still be issued insurance premiums. Papoyan noted that in 2026, another reinsurance company will be selected as a partner of the program. Now, according to him, active negotiations are underway with several companies simultaneously. At the same time, the minister emphasized that in 2025, under the agricultural insurance program, it will be possible to insure all agricultural crops against all types of risks.
Recall that the agricultural risk insurance program was launched in Armenia in September 2019 and continued to operate until 2023, in fact, in pilot mode, covering six regions of the country. Insurance companies began selling policies in early 2020.
