A turning point for Crop Insurance management in Russia
NAAI - the single nationwide association of insurers in Russia, counting 18 ag insurance companies - initiates new practices and confirms its partnership with GEOSYS™ to support this historical change.
NAAI’s press-conference, dedicated to a new status of the association, took place
The press conference of the National Association of Agricultural Insurers (NAAI) dedicated to the assignment of the status of a unified all-Russian professional association of insurers in the state funded agricultural insurance market (unified all-Russian association of agroinsurers) to NAAI took place in Moscow on September 23 in the International News Agency “Russia Today” press centre.
NAAI: the main risk for plant growing, drought, was realized in 2015
According to the preliminary data, the forecast made earlier by the National Association of Agricultural Insurers concerning the year 2015 proves right : this year is less favorable for plant growing than the previous two years considering natural perils. The main crop losses were caused by severe drought in a number of areas of the Volga territory and Siberia, where emergency was declared. This risk is included into the list established by the law and can be insured on the terms of state support
New frontiers in agricultural insurance
With an estimated global insurance premium of USD 31bn in 2014 and annual average growth rates of 20%, agriculture insurance has grown four-fold since 2005 and is, in many countries, the largest speciality line in terms of premium volume. The main growth has come from North America with the introduction of revenue-based crop insurance and, more recently, from emerging markets such as China, India and Brazil, driven by rapidly increasing insurance penetration. Agriculture is seen as a diversifying risk to other insurance lines of business and is attracting more and more reinsurance capacity, collateralised reinsurance and side cars. The occurrence of devastating droughts and floods and eradication of livestock populations following disease outbreaks have brought agriculture risk management to the attention of actuaries, catastrophe risk managers and accumulation controllers. While similar to property risks in terms of exposure to natural disasters, agriculture needs a specific approach to risk management approach and risk modelling to assess large loss events.