October 19, 2019

Azerbaijan to get new agri insurance tool

premium-june-2019-Looking-west-Agriculture

A new agricultural insurance model will be launched in Azerbaijan till late 2020, Firdovsi Agashirinov, head of the Insurance Supervision Department of the Financial Market Supervisory Authority of Azerbaijan (FIMSA) has said.

“Turkey’s and Spain’s agricultural insurance mechanisms were chosen as samples for the development of the bill on agricultural insurance,” he said.

“The task of creating an agricultural insurance mechanism has been set before both FIMSA and the Ministry of Agriculture,” Agashirinov said. “A working group has been created to review the international practice. The advanced models of agricultural insurance of Spain, Turkey, the US, Canada and Israel have been considered.”

He said that after the law came into force, agricultural insurance would be used on the basis of a mechanism of cooperation between the state and the private sector and will be implemented through a joint insurance system. The agrarian insurance will be managed via an e-information system.

He continued, “A group of experts specialising in agricultural insurance will be instituted. Today, insurance companies render agricultural insurance services individually, and reinsurance companies are not interested in providing them. After the new mechanism is applied, insurance services will be rendered on a vast scale, rather than individually, which will be interesting and attractive for reinsurance companies.”

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