RUSSIA: January-June number of insured livestock with state support increased by 30% y-o-y

4 August 2020 — Marina MAGNAVAL
In the first half of 2020, about 3.4 million livestock items were insured with state support, which is 30% more y-o-y, according to the National Association of Agriculture Insurers (NAAI) figures.

The President of NAAI, Korney BIJDOV, noted that the demand for subsidized livestock insurance is on a growing trend:

"In total, state support to livestock breeders in purchasing insurance policies was provided in 48 constituent entities of the Russian Federation in the first half of this year. Of these, in 37 regions farmers insured more livestock than on the same period a year ago, while 16 regions already exceeded the result for the entire 2019 year."

NAAI expects that the positive trend on this market will continue during the second half of 2020 as well. At the same time, for the second year in a row, livestock breeding has been showing a pronounced demand for insurance, the main drivers of which are concerns of farmers related to epizootic risks and a possibility of state partial compensation of insurance premiums. NAAI explained:

"In 2019, when insurance with state support was actually recovered, the number of livestock units insured with state support increased by 42% in the country (...) However, less than 50% of livestock was covered by insurance with state support, so there is still potential for growth in the industry."

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