RUSSIA: total insured area of agricultural crops increased 5 times in the first 7 months of this year

29 August 2019 — Cosmin CONCEATU
National Association of Agricultural Insurers (NAAI) announced improvements in the Russian agricultural insurance business, for the first seven months of 2019. The total insured area was of 2.8 million hectares, 5 times the size of the same period of prior year.

Improvements were seen in livestock insurance too. Between January-July 2019, about 3.1 million livestock was insured, reflecting a 25% increase compared to the same period of 2018.

NAAI noted that the insured area of crops in 2019 already exceeded the 2018 indicators and is 2.4 times the size of the insured sowing for 2018 (1.2 million hectares). "Thus, sowing covered under the contracts of 2019 has already exceeded 3% of the total sown area. Together with winter crops insured last fall, it reaches 4%," said Korney BIZHOV, President of NAAI.

BIZHOV recalled that a set of measures to develop the Russian agricultural insurance system was presented on the 25th of September last year. The plan provides for an annual increase in insurance coverage of agricultural land of 1-2% of the total area in the Russian Federation, aiming to reach a coverage rate of at least 11.3% of the all-Russian arable land by 2025. For 2019, the targeted coverage ratio is 3.3% of total agricultural area.

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