Press

NAAI - the single nationwide association of insurers in Russia, counting 18 ag insurance companies - initiates new practices and confirms its partnership with GEOSYS™ to support this historical change.

The press conference of the National Association of Agricultural Insurers (NAAI) dedicated to the assignment of the status of a unified all-Russian professional association of insurers in the state funded agricultural insurance market (unified all-Russian association of agroinsurers) to NAAI took place in Moscow on September 23 in the International News Agency “Russia Today” press centre.

According to the preliminary data, the forecast made earlier by the National Association of Agricultural Insurers concerning the year 2015 proves right : this year is less favorable for plant growing than the previous two years considering natural perils. The main crop losses were caused by severe drought in a number of areas of the Volga territory and Siberia, where emergency was declared. This risk is included into the list established by the law and can be insured on the terms of state support

The possibilities of extension of agricultural insurance with state support, as well as the improvement of its terms became some of the issues landed at the Russia cabinet meetings on August 3, which was dedicated to the progress of harvesting in 2015. Korney Bizhdov, the President of NAAI, spoke about the situation in agricultural insurance at the meeting.

The development of agricultural insurance in Russia is in the mainstream of worldwide trend though now its characteristics are not adequate to agribusiness market size. While in the world the share of the insured farmlands makes 38%, and in a number of countries about 90% of crops are insured, Russia still can’t make more than one fifth of cultivated areas being insured. To propel agricultural insurance to the next level, we need to solve a series of tasks connected, first of all, with the infrastructure development and to improve management control, as well as to offer diverse terms of insurance taking into account some regional features. Such proposals were made by participants of the International round table "World experience and improvement of agricultural insurance in Russia" which took place in Moscow on April 8.

According to the statistics of the Central Bank of the Russian Federation and the National Association of Agricultural Insurers, the market of agricultural insurance in Russia showed growth rates, almost twice exceeding development rates of the whole insurance market in 2014.

In 2014 the Russian Federation had the lowest frequency of emergency situations in 3 years in agriculture. The data were given by the Ministry of Agriculture of the Russian Federation at a meeting on agricultural industry perfomance in 2015, in which Korney Bizhdov, the president of the National Association of Agricultural Insurers, took part.

On December 22 the Russian President Vladimir Putin signed into Law No. 424-FZ "On modification of the “Federal Law on State Support of Agricultural Insurance “ It is the first correction of the system of government-subsided agricultural insurance after introduction of the relevant law No. 260-FZ on state aid of agricultural insurance, entered into force 2012.

The National Association of Agricultural Insurers renders assistance to its members on their implementation of the recommendations contained in the instructions of the Russian President V. V. Putin on the accelerated and simplified insurance payments in emergency area in Southern Siberia, according to both government-subsided and commercial agreements for agricultural insurance.

The board meeting of the International Association of Agricultural Insurers (AIAG) approved joining of the National Association of Agricultural Insurers (Russia) on May 16j