30.01.2020 | NAAI
Korney Bizhdov, President of NAAI: the volume of the agricultural insurance market in 2019 exceeded 5.3 billion roubles
According to the National Association of Agriculture Insurers, the volume of the Russian agricultural risks insurance market, as of 31st December, 2019, reached 5.3 billion roubles. The data includes insurance premiums with state support in the amount of 4.3 billion roubles, as well as insurance premiums for agricultural contracts concluded without subsidies in the first 9 months of 2019 in the amount of 983 million roubles.
30.01.2020 | NAAI
NAAI and Spanish agricultural insurers continue their cooperation agreement
The National Association of Agriculture Insurers and the AGROSEGURO organization, responsible for coordinating the agricultural insurance system in Spain, extended their cooperation agreement in 2020. Ignacio Machetti Bermejo, President of AGROSEGURO, announced this in a letter to the President of NAAI on 13th January.
16.12.2019 | NAAI
NAAI President Korney Bizhdov: about 34% of the swine population and 25% of poultry in livestock farms are insured in Russia
In 2019, a marked recovery took place in the agricultural insurance system with state support: the insurance coverage of crops increased 4-fold, to 4.1 million hectares, making up more than 5% of the cultivated area. In livestock risks insurance, there has also been a double-digit increase, while those operations most vulnerable to epizootic risks – swine breeding and poultry farming – are at 34% and 25% of livestock coverage in agricultural enterprises and farmer households respectively. This was stated by the President of the National Association of Agriculture Insurers, Korney Bizhdov, speaking at the seminar "Insurance in the Media Mirror", held in Moscow on December 4th, 2019.
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.