Fuad Sadigov: Agricultural insurance market shows double-digit growth rates

In the first year of the application of the agricultural insurance mechanism with state support in Azerbaijan in 2021, insurance premiums increased by 5.3 times, Report informs, citing Fuad Sadigov, Chairman of the Board of the Agricultural Insurance Fund.

According to him, in 2020 (before the introduction of this mechanism), about 100 hectares were insured in the crop sector and AZN6,000-7,000 insurance premiums were collected, and in 2021, 350,000 hectares were insured, and insurance premiums exceeded AZN6 million.

F. Sadigov noted that in 2021, compared to 2020, the growth of insurance premiums increased by 3.1 times in the livestock sector. This means that the agricultural insurance market is showing double-digit growth rates.

He recalled that earlier insurance companies did not provide services in this sector, since it was considered unprofitable: "The absence of agricultural insurance created difficulties for farmers. The first year we started with insurance of 14 plants, and then increased their number to 41. This means coverage of 95% out of 1.9 million hectares sown in Azerbaijan. Insurance covers 96% of crop production in the amount of AZN4 billion, In Azerbaijan, these services have not yet been provided to farmers. Insurance covers 95% of the country's sown area, 96% of production, and 97% of our farmers can already receive insurance services.”

F. Sadigov added that a number of requirements are put forward for persons wishing to insure: “One of them is the registration of animals in the agricultural electronic information system. A farmer himself must also be registered in the system, otherwise he will not be able to receive state insurance. To do this, you need to contact the Agricultural Insurance Fund. To date, the amount of insured events amounted to AZN600,000-700,000.”

It should be noted that in June 2019, a law on agricultural insurance was adopted. And in August 2019, by the decree of President Ilham Aliyev, the Agricultural Insurance Fund was established.