KAZAKHSTAN: in 2021 KZT 3.3 billion to be allocated to subsidize agroinsurance

18 February 2021 — Marina MAGNAVAL
In 2021 Kazakhstan is planning to allocate KZT 3.3 billion (~EUR 6.5 million*) to subsidize agroinsurance. The Kazakh plant growers can insure their farms on the soil moisture index, and that half of the cost of insurance is paid by the state, Kazinform news agency reports with reference to the press service of the Ministry of Agriculture.

In 2020 claims paid to farmers reached about KZT 535 million, online insurance was launched and use of the information system for claim settlement insured objectivity and transparency of the mechanism of insurance payments, the press release said.

Kazakhstani insurance companies reinsure their risks with the largest players in the world market - international companies Swiss Re, Munich Re and Hannover Re. The operator in the agroinsurance is the Fund for Financial Support of Agriculture. The Fund believes that the mechanism of insurance against drought, with prices reduced by half due to state subsidies, will become a significant support for domestic plant growers.

* at the following exchange rate:

EUR 1 = KZT 506.28 (as of 17.02.2021)

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