According to experts, this year the volume of the entire Russian agricultural insurance market may reach a record level of 12 billion rubles.
The President of the National Union of Agricultural Insurers, Korney Bizhdov, spoke about this. He shared current results at the Barrier 2023 conference. Combating insurance fraud. Economics and law, methods and means, tools and technologies.”
First of all, growth is due to insurance with state support, which accounts for the bulk of all concluded contracts.
Over the 11 months of this year, the volume of insurance with state support increased by 16% compared to the same period last year and reached 10.4 billion rubles.
At the same time, according to Russian laws, only companies that are members of the National Union of Agricultural Insurers (NAA) have the right to engage in insurance with state support.
Among other things, there is a growing trend in the area of insured sowing.
It has increased over the last period by 62%, to 10.8 million hectares, which can be considered a very significant increase.
At the same time, insurance in livestock farming is also growing in volume. For example, this year 11.5 million heads of livestock were insured, which is an increase of 13%.
As for insurance without state support, it is also growing, although the growth rate is not so noticeable.
In general, over the last year this market amounted to 1.1 billion rubles. Basically, we are talking about the fact that farmers insure “on their own” those risks that, for some reason, are not covered by agricultural insurance with state support.
Insurance works: companies get paid
Insured companies have every opportunity to count on payments when an insured event occurs.
For example, this year a record was set: after an outbreak of African swine fever, a pig-breeding enterprise received a payment of 850 million rubles.
And this is not the only case of large sums being paid. In the same year, 236 million rubles were paid to a company that suffered from the freezing of vineyards, and 185 million to an agricultural enterprise that lost the harvest of several crops.
“Access to agricultural insurance has been organized everywhere where agriculture is carried out: in general, 74 regions of the country are involved in the agricultural insurance system in Russia in 2023, with the exception of a number of northern regions.
Insurance with state support has become an integral part of the functioning of livestock farming — the insured livestock exceeded 40%, according to an average estimate, while in the pig and poultry sub-sectors the coverage is about 60%.
Let me remind you that state support for livestock insurance was introduced only in 2013, and before that such insurance was used only at the level of single episodes. In fact, this line of insurance has emerged over the past 10 years,” notes Korney Bizhdov.
