ARMENIA: the pilot agro insurance program to be launched in March
As GEVORGYAN explained, at the initial stage about AMD 0.5 billion (~EUR 900 thousand) will be allocated for the program financing and the program will include fruits and vegetables with insured risks against hail and frost.
"Nothing like this has been done before - the system provides for a 100% compensation of farmers' losses," GEVORGYAN said at the end of November 2018. He noticed, that the program provides for subsidized insurance contributions and the subsidies will make 60-65% of the cost of insurance policies.
As the representatives of the Ministry have repeatedly stated, the system of agro insurance will become a new solution for full coverage of farmers' losses. As of today, agricultural losses from natural disasters in the amount of about USD 25 million are to be compensated by the state, and in case of insurance coverage those indemnities will be paid by insurers.
By the end of the year it is planned to complete development of all necessary documents and finally form the National Agroinsurance Risk Management Agency (NARMA). The Bureau will evaluate effects of natural disasters and develop new insurance products. According to GEVORGYAN, all insurance companies are willing to participate in the program.
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.