RUSSIA: NAAI: in the first quarter of 2021 GWP in agroinsurance with state support increased by 16% y-o-y

5 May 2021 —
In the first quarter of 2021, agroinsurance with state support continued to grow - GWP under contracts concluded over the period amounted to RUB 492 million (~EUR 5.54 million*), which is 16% more y-o-y, according to the National Association of Agriculture Insurers (NAAI) website.

The number of regions in which insurance contracts were concluded on the terms of state support in 1Q2021 increased to 38 constituent entities of the Russian Federation (vs 34 a year ago).

"Due to seasonality of agricultural production and the annual subsidy cycle, the first three months of each year have always been the least active period for the agroinsurance market (...) Now it is obvious that this activity has approximately doubled: for comparison, two years ago - in the first three months of 2019 - insurance contracts with state support were concluded in 16 regions, and the GWP amount was only RUB 174 million", explained Korney BIJDOV, President of the NAAI.

In the GWP structure of agroinsurance for the first quarter, livestock insurance traditionally dominates (RUB 433 million, +53% y-o-y). At the same time, the insured livestock population increased by 84%.

Fish insurance continues to develop: a year earlier, when the support of insurance coverage in commercial aquaculture was first applied in practice, GWP in this segment amounted to RUB 2 million, and at the end of 1Q2021 premiums reached RUB 12 million.

As for the crop insurance, in previous years, as Korney BIJDOV noted, during this period crops were insured in a minimum number of regions - in the first quarter of 2019, such contracts were concluded only in 2 regions, while in 2020, on April 1, due to the abnormally warm winter in the south and early sowing campaign, the NAAI received information about crop insurance contracts in 13 constituent entities of the Russian Federation. In the current season, insurance activity in this direction is still high: crop insurance contracts have already been concluded in 11 constituent entities of the Russian Federation, the President of the NAAI emphasized.

* at the following exchange rate:

1 EUR = 88.7452 RUB (01.04.2021)