UZBEKISTAN: Semurg Insurance: Uzbek farmers' interest in insurance is growing

29 March 2023 —
On March 25, the second International Conference AgroInsurance 2023 was held in Tashkent, where important issues were raised to ensure stable development of the agro-industrial sector of Uzbekistan, according to a press release on the website of the Ministry of Agriculture of Uzbekistan.

The conference was supported by the Ministry of Agriculture, the Ministry of Investments and Foreign Trade, the Ministry of Economy and Finance, the Agency for the Development of the Insurance Market under the Ministry of Finance, as well as the largest international reinsurance companies Swiss Re and Europa Re. The conference addressed issues of insurance, financing, as well as investment and risk management in the field of agriculture. The event was organized by the insurance company Semurg Insurance.

"The strategy for the development of agriculture in Uzbekistan for 2020-2030 provides for improvement of mechanisms for insurance and lending to relevant areas of agriculture and the food sector. About 90 thousand farms, over 500 thousand individual dehqan farms and about 5 million subsidiary farms operate in Uzbekistan. About 70% of all fruit and vegetable products of the republic are produced in their territories. (...) Activities in agriculture are quite risky. It is important for agricultural producers to insure their property and agricultural products in time", said Umid Mamadaminov, Deputy Minister of Agriculture of the Republic of Uzbekistan, in his speech.

"We are convinced that Uzbek farmers have a growing interest in insurance, both in large clusters and in small dehqan farms. The purpose of this conference is to discuss with our agricultural producers how insurance will compensate them for the damage from crop failure and help them continue, and even expand, their business. I would like to note that payments under the Semurg Insurance agricultural insurance program are guaranteed thanks to cooperation with the largest international reinsurer Swiss Re, whose reliability rating is very high. Such international cooperation guarantees payments even for especially large losses, which happen quite a lot in agriculture lately", said Jasurbek Abdullajanov, Deputy General Director of Semurg Insurance.

The conference participants identified measures to increase funding for agricultural producers. A unique financial instrument for Uzbekistan, widely used in international practice, was presented - use of an insured future crop as collateral for obtaining a loan for development of agricultural business, the press release said.