28.08.2019 | Crop insurance in Russia
NAAI: restoration of the agricultural insurance system of Russia continues; the area of insured crops increased by 5 times
The restoration of the agricultural insurance system in Russia continues - confirmed by the data accumulated by the National Association of Agriculture Insurers for the first 7 months of 2019. “The results presented by members of NAAI on the 01st of August, 2019, confirmed the trend of steady growth for all agricultural insurance system indicators,” said the President of NAAI, Korney Bizhov. “The area of agricultural crops insured with state support reached almost 2.8 million hectares. This is 5 times higher than for the same date last year - 552 thousand hectares. ”
Korney Bizhdov: global trends in agricultural insurance development were discussed at the International NAAI round-table
“The discussion of current trends in agricultural risk insurance at the International round-table of the National Association of Agriculture Insurers in St. Petersburg showed that agricultural insurance on our continent faces several serious challenges. These challengers should be taken into consideration when further developing insurance protection mechanisms for agrarians in our country,” said Korney Bizhdov, President of NAAI, commenting on the results of the international event.
NAAI and ASNACODI held a joint seminar on agriculture insurance in Italy
On 13-14 June, 2019, the NAAI and the Italian National Association ASNACODI held a joint international seminar in Rome, “The State and Prospects for Developing an Agricultural Insurance System with State Support in Italy” in order to exchange experiences. The event was attended by the Management Board of NAAI, representatives from the Ministry of Agriculture of Russia and insurance companies.
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.