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May 9, 2021

Agricultural insurance up 77 pc in first half of 2011

Bogdan Pirvu, General Manager, FATA Asigurari, said that there is a major correlation between agricultural cultures insurance and relevant investments, with the latter being among the highly risky, according to Wall-Street.ro.  “They are very large investments – depending on the surface area, the farm size or its specifics. Given the cultures being in the open-air, it is an unprotected investment,” he explained. Nonetheless, at 20 pc, agricultural insurance potential is far from being capitalised on. The good news is that, despite only accounting for 1 pc of the insurance market, it however rose upwards of 77 pc in the first half of 2011, a trend expected to continue, given that, in 2010, the state resumed subsidising at least half of the insurance premium amount. Government resolution 573/Aug 12, 2010 stipulates the agricultural culture insurance premium being subsidized by 50 to 70 per cent, depending on the culture type, via the Agency for Payments and Interventions in Agriculture (APIA). Therefore, the farmers willing to benefit from this form of assistance shall submit an application with APIA county centres.  “Romania has a very high agricultural insurance potential, yet the sector penetration is rather low. We are struggling with this mentality and the lack of farmers’ information. We will keep focusing on and consolidate the agricultural insurance. Also, we are quite keen to broaden the collateral agricultural insurance offer. Practically, we want the farmer to become our partner with all their assets,” Bogdan Pirvu also said.

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