RUSSIA: paid claims in agroinsurance exceeded premiums in Q1

According to the National Association of Agriculture Insurers (NAAI) during the first quarter paid claims in agroinsurance with state support jumped dramatically (one third growth compared to Q1 2017).

President of NAAI Korney BIJDOV explained that usually first quarter of a year demonstrates low activity in policy conclusion. However, this year it is extremely low, and the reason, he believes, is that under the conditions of growing costs for sowing and harvesting, many producers cannot purchase insurance coverage.

In Q1 2018 total number of insurance agreements in agriculture amounted to 18.7 thousand (a year ago this figure was equal to 20.1 thousand agreements). At that premiums in agroinsurance with state support decreased by 70% (from RUB 598 million to 181 million), while premiums under agreements without subsidies increased by 67% (from RUB 309.5 million to RUB 518.5 million). According to BIJDOV this means growth of the number of big corporate clients.

Paid claims under agricultural risk insurance agreements in Q1 jumped by 35% (from RUB 433.9 million to RUB 584.7 million), general claim ratio amounted to 84% (claim ratio without state support - 75%, and claim ratio with subsidies - 108%), wrote the portal ASN.

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