Погода
56.99 64.15
27 Апреля 2018
Foreigners

Agroinsurance Needs Reforms

Agroinsurance Needs Reforms

Krasnodar, 27 April – Yug Times. The Russian Central Bank has acknowledged the agroinsurance sector as failed for the third consecutive year. According to experts of the National Union of Insurers, its main reason was the experiment on inclusion of the payments on agricultural risks from regional and federal budgets into the structure of a united governmental subsidy for agricultural producers, that began in 2015. Lilia Kravchenko, Director of the Agricultural Insurance Centre of VERNA Insurance Company, comments on the issue:

“The insurance market depends in its progress upon the general situation in the national economy which is known to be not too much favourable. We see the insurance sector fall, including agricultural insurance. However, there also are some peculiar reasons for the shrinking of this segment of the financial market.

“When changing the entire system of subsidizing the agricultural complex at the end of 2016, the peculiarities of agricultural insurance system were not taken into account, which led to cardinal changes in this sector. “Earlier, the government had helped the farmers finance their insurance payments, but at the end of 2016 this support was included in the ‘united’ subsidy which combined into one dozens of payments connected with governmental support of the agricultural sector, agroinsurance included. Regions were given right to determine the ways and volumes of payouts, and the priority was given to production development. The Krasnodar region was no exception - agroinsurance did not become a priority there, either.

“As a result, the factual volume of subsides allocated for agroinsurance reduced by three times nationwide.


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