RUSSIA: total number of insured livestock more than doubled in 1Q2020 y-o-y

7 May 2020 — Marina MAGNAVAL
In 1Q2020, GWP under agricultural insurance contracts with state support reached RUB 425 million (~ EUR 5 million). Almost 67% of premiums were collected under livestock insurance and the rest under crop insurance, ASN reports citing the press-service of the National Association of Agriculture Insurers (NAAI).

According to the President of NAAI Korney BIZHDOV, agroinsurance with state support grew 2.4 times y-o-y, and the share of crop insurance increased as well, since last year when almost the entire amount of GWP came from livestock insurance only.

BIZHDOV said that there has been an increase in demand for insurance coverage in agroinsurance compared to previous years, and the ongoing practice of crop insurance is typical for countries with developed agroinsurance system. The NAAI president also noted growing demand for livestock insurance, which more than doubled y-o-y.

KorneyBIZHDOV believes that changes in legislation and organizational measures of the Ministry of Agriculture and NAAI are the factors of growth of agroinsurance with state support:

"The results of the first quarter of 2020 have shown that the demand from farmers for insurance protection remains active. In the second quarter the agroinsurance market is facing serious challenges associated with the spread of coronavirus. In these difficult economic conditions, the agroindustrial complex is becoming more vulnerable to natural risks, which means that the key task for NAAI this year is not just expansion, but also development of insurance protection and improving its availability."

*EUR 1 = RUB 85.7389 (01.04.2020, Central Bank of Russia)

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