"Considering the fact that there are 1.7 million crop areas in the country, we can already insure 450,000 hectares of land", he said at an event titled "Agricultural Insurance in Azerbaijan: Development and Perspectives", Trend writes.
The event in Baku was attended by Chairman of the Board of the Agricultural Insurance Fund Fuad Sadigov, Advisor to the Minister of Agriculture Zaur Aliyev, Head of the Media Development Agency's Department Elshan Aghayev, Head of the International Cooperation and Research Department of the Agricultural Insurance Fund Azar Mammadov, as well as media representatives.
“The charter capital of the Agricultural Insurance Fund is AZN 9 million. Thanks to the activities of the agricultural insurance system, the Fund's assets have grown from AZN 9 to 30 million in 4-5 years”, Fuad Sadigov added.
Zaur Aliyev, in turn, noted that support for farmers will remain a key element of Azerbaijan's agricultural policy in the future. According to him, the agricultural sector has been successful over the past five years. "Against the backdrop of climate change in recent years, insurance payments allow farmers to continue their activities", Zaur Aliyev said.
Azar Mammadov noted that the number of natural phenomena in Azerbaijan has more than tripled over the past 20 years. According to him, during the period, the number of hail events increased 3 times, floods - 12 times, and number of days with strong winds and storms - 18 times. "This once again confirmed importance of the agricultural insurance mechanism", he emphasized. "Since 2020, that is, after the start of the Agricultural Insurance Fund's activities, there has been a sharp increase in the collected premiums. Thus, by 2024, AZN 14.2 million were collected within the framework of the agricultural insurance mechanism", Azar Mammadov added.
Agricultural paid claims in Azerbaijan amounted to AZN 6.4 million (USD 3.7 million) in 2024, said Ali Ahmadov, a representative of the Agricultural Insurance Fund. According to him, in 2022, paid claims totaled AZN 2.4 million (USD 1.4 million), while in 2023, they increased to around AZN 4.4 million (USD 2.5 million).
"In 2023, 240 thousand hectares were insured, and insurance premiums worth AZN 7.3 million were collected. In 2024, 246 thousand hectares were insured, and premiums worth AZN 5.4 million were collected", he said. "2024 can be considered as a period of expanding agricultural insurance coverage in Azerbaijan. Last year, the insured sown area in Azerbaijan slightly increased and reached 447 thousand hectares. This is about 30% of the insured land in the country. In 2024, the insured sown area increased by 25 thousand hectares, or about 6%. This growth is also seen in the number of contracts. The number of insurance contracts concluded with the Agricultural Insurance Fund is growing rapidly. In 2022 we had 47 thousand contracts concluded. In 2023, their number increased to 51 thousand, and in 2024 it reached 56.7 thousand. Insurance coverage for crop production is increasing every year. In 2024, we insured products for a total of AZN 513 million", added Ali Ahmadov.
“Investment directions are set at the beginning of each year, and this year alike, the Agricultural Insurance Fund's investment focus is estimated to be around AZN 22 to 23 million (USD 12.9-13.5 million)”, said Fuad Sadigov. He noted that these funds are invested in government securities and banks with ratings higher than B- by international rating agencies. "There are only five such banks in the country. We cannot invest in any bank that is not stable. We only invest in state-owned banks, government securities, and banks with ratings higher than B- by international agencies", he added.
The Agricultural Insurance Fund of Azerbaijan has plans to introduce insurance for beekeeping enterprises in 2025, according to Fuad Sadigov. He pointed out the aim to broaden the net of crop production insurance, which is currently sitting at 41%.
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