ARMENIA: launch date of agro insurance project is not yet determined

The Agricultural Ministry of Armenia previously announced that around the end of 2018 and beginning of 2019, insurers would start to sell agro insurance policies. However, as of now, launch of the agro insurance project is not yet determined and no memorandums are signed with insurers, as member of the Agricultural Alliance and Council to the CEO of NAIRI company, Artak MARTIROSYAN, announced.

According to him, there are two key obstacles to introduction of agro insurance: absence of clear understanding of the risks and related losses, as well as absence of any mechanisms for evaluation of agricultural damage. "For example, insurers should be well informed - which area, when and to which extent some crops were damaged," added MARTIROSYAN.

Based on the data from the Ministry of Agriculture, the German Bank KFW will invest EUR 5.3 million for the project's introduction, financing from the Agricultural Ministry will amount to EUR 5 million, and also Climate Investment Funds will provide EUR 2 million. Consulting will be handled by a consortium of three companies. Within the framework of the project is a planned National Agro insurance Risk Management Agency (NARMA). EUR 1.9 million will be allocated for creation of the Agency. NARMA will assess effects of natural environmental disasters as well as develop insurance products, wrote ArmInfo portal.

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