AZERBAIJAN: Agro insurance Fund to be established alongside new insurance mechanism
The mechanism was developed based on the experience of such countries as the USA, Canada, Spain, Turkey and Israel. After the new laws enter into force, agro insurance will operate based on cooperation between the state and private sector and will be managed via an e-information system.
The new mechanism provides for the establishment of a management body within the Agro Insurance Fund. Initial charter capital of the Fund will be AZN 1 million (~EUR 0.53 million) at the expense of the state budget.
A Board of Trustees will be created within the Fund, consisting of representatives from the Ministry of Agriculture, Ministry of Finance, Financial Market Supervisory Authority, and the Association of Farmers.