National Association of Agriculture Insurers

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.

“The exchange of experiences with one of the most productive foreign agricultural insurance systems with state support is fundamentally important for NAAI,” comments the President of NAAI, Korney Bizhdov. “Of particular interest to the association is the variety of subsidized insurance programs offered to agrarians: according to 2019 data, at least 40 of them were developed in Spain. NAAI has been cooperating with AGROSEGURO since 2016. I am sure that continued productive interaction will become an additional incentive to improve the quality of agricultural insurance in Russia”.
Meetings and joint events of NAAI and AGROSEGURO have been held annually since 2016. In 2017-2018, in the Spanish province of Tarragona and in the city of Madrid, seminars were held to improve the skills of specialists in the field of grain and fruit crops insurance and aquaculture with representatives from insurance companies-members of NAAI participating in the following events. Throughout 2017-2019 representatives from Spain took part in 3 international round-tables on agricultural insurance, which were organized by NAAI as part of the International Insurance Conference of the All-Russian Association of Insurers.

The Spanish agricultural insurance system has been developing for more than 40 years and provides insurance coverage for crops, livestock production, and commercial aquaculture. Annual insurance payments received by Spanish farmers, in the period from 2015 to 2018, ranged from 450 to 700 million euros. Over the past two years, due to natural disasters, insurance payments have exceeded these numbers. The amount of subsidies in Spain amounted to 318 million euros in 2018 with the volume of insurance premiums on policies with state support at 757 million euros.

According to Federal Law N 260-FZ “On State Support in the Field of Agricultural Insurance”, within the framework of a centralized system, state support is provided for insurance of crop production, animal husbandry and commercial aquaculture risks. Since January 1st, 2016, a single all-Russian association has been operating in the agricultural insurance market with state support: the National Association of Agriculture Insurers.
In 2018, the Law “On State Support in the Field of Agricultural Insurance ...” N 260-FZ was amended, with the purpose of creating agricultural insurance conditions that are both more flexible and more diverse. The law entered into force on March 1st, 2019.