Only 3% of acreage planted insured in Ukraine

2011-11-03 16:46:58

In 2011, 2,694 agricultural insurance agreements were concluded in Ukraine and 769,550 ha were insured, which makes up 3% of acreage planted.

As agricultural insurance expert of the IFC project Development of Agricultural Insurance in Ukraine Roman Shynkarenko has said, the amount of premiums made up UAH 133.5 million. The amount of payments on insurance agreements for a period of autumn-winter 2010-2011 amounted to UAH 19.2 million. Payments for the period autumn-winter 2010-2011 exceeded 70%.

"Over three years, we carried out studies of the agricultural insurance market, based on information presented by insurance companies. Over that period, the number of companies working in this sector reduced, nevertheless the quality of services grew," he said.

As representative of the department for regulation standards and supervision over financial establishments under the State Commission for Regulation of Financial Services Markets Oleksandr Polynets told a press conference, a concept of agricultural insurance was developed in Ukraine.

Now it is being coordinated with interested parties.

"Development of agricultural insurance in Ukraine is hampered by insufficient understanding of its importance, both on the part of agricultural producers and insurance companies, as well as by an insufficient number of attractive insurance products and mutual failure of trust among market participants. In the meantime, development of agricultural insurance is extremely important. Annual losses in the agricultural sector of Ukraine reached UAH 3-7 billion (1 USD - 7.98 UAH). The state is ready to compensate less than 10% of those losses," he said.

Polynets also informed that till the year end, certified average commissioner will appear in Ukraine to work on the agricultural insurance market.

"Presently, we are engaged in development of average commissioner training standards, who will work in the agricultural insurance sphere. At this stage, preparation of examination tickets is underway; we carry out negotiations with higher educational establishments, ready to hold training. I hope that till the year end, we will be able to prepare the first group of certified average commissioners," he said.