For 11M2021, paid claims of Russian agricultural insurers (under contracts with and without state subsidies) exceeded total paid claims for the entire 2020 by 35% and reached RUB 4.2 billion (~EUR 49.51 million*), as reported by the President of the National Association of Agricultural Insurers (NAAI) Korney BIJDOV, ASN reports.

By the end of the year, total amount of paid claims under the concluded contracts will be even higher, as noted by the NAAI President.

In crop production, losses are growing due to an increase in the frequency of natural emergencies, the president of the NAAI explained. "In 2021, according to the very minimum estimates, 16 regions received direct damage (at the cost of production) in the amount of about RUB 8 billion due to emergencies", said Korney BIJDOV. In livestock production, according to him, "an alarming situation with epizootic problems is growing".

GWP collection in all types of agroinsurance for 9 months of 2021 increased by 20%, including under contracts with state support by 23% y-o-y. "The NAAI's forecast for 2021 on total GWP in the agroinsurance sector is more than RUB 9 billion", the president of the NAAI emphasized.

In 2021, 6.3 million hectares were insured, the area of insured crops increased by 900 thousand hectares, y-o-y increase here was 14%. Insurance coverage is about 8% of the total crop area. At the same time, under the contracts for livestock insurance, insurance coverage in pig breeding reached 60% (+25% of the insured livestock), in the poultry industry coverage is more than 50% (+39%) and total insured cattle population (+42%) will be 10% by the end of the year.

It was noted that the main task for NAAI and agricultural insurers in 2022 will be the launch of an additional system - crop insurance against risks of climatic emergencies. The law was adopted in 2021 and the first contracts for protection of crops and perennial plantations against emergencies will be concluded from next year, Finmarket reports. The level of subsidies under the new law is set at 80% of policies' cost, tariffs will be much lower than for classic crop protection policies with state support, while insurance coverage will be less. Policyholders will be able to combine the new program with elements of the old one at will, but in different policies, as BIJDOV explained.

* 1 EUR = 84.8234 RUB (01.12.2021)