According to the National Agricultural Insurers Agency (AINA), 3,626 contracts were concluded in the first quarter of 2026, with total insurance premiums amounting to AMD 705.5 million (USD 1.9 million), of which 55% (AMD 387.7 million) was the share of insurance companies and 45% (AMD 317.9 million) was subsidized. The total area of insured land is 3,775 hectares.
The dominant crops in terms of premiums (AMD 687.7 million) and the number of contracts (3,396) are apricots, grapes, peaches, plums, and grains. The largest area of insured land is used for apricots and grain crops – 1,590 hectares and 1,421 hectares, respectively.
It is noted that the agricultural risk insurance program was launched in Armenia as a pilot program in September 2019, with policy sales beginning in 2020. The program's partners were Swiss Re, and the German bank KfW (subsidized jointly with the Armenian government on a 50:50 basis). This program was in effect until issues with inadequate oversight of claims exceeding the estimated damage were identified in 2024. That same year, Swiss Re withdrew from the Armenian agricultural insurance market, and insurance companies were unable to fully cover the insurance risks, given the high losses caused by climate change. Since then, agroinsurance declined sharply. Thus, in 2023, insurance companies concluded 10,192 contracts, and insurance premiums amounted to AMD 1.8 billion, and in 2024, only 27 contracts remained, and premiums dropped sharply to AMD 22 million.
According to ArmInfo analysts, the government's attempts to revive agricultural insurance, in addition to raising the subsidy threshold from 50-60% to 70-80% in 2025 (if damages exceeded 200%, insurance companies were entitled to compensation for this portion as well), and by taking on the reinsurance function, led to the resumption of this program in 2026.
However, according to the analysts, AMD 200 million allocated for agroinsurance in the 2026 state budget are unlikely to allow the Armenian government to fully fulfill its obligations, especially since global climate change is irreversible, and insurance companies, as previous years have shown, are unable to cover agricultural risks without robust reinsurance. Meanwhile, the World Bank has recommended systemic changes aimed at introducing the next insurance stage and launching a new, reformed program in 2027, the source writes.
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