This year, Ukraine will launch a mechanism of state support for agricultural insurance: the state budget will allocate funds to agricultural producers for partial reimbursement of the cost of insurance payments. The All-Ukrainian Agrarian Council has agreed on optimal insurance conditions and favorable tariffs for its members with one of the leaders in the insurance market, INGO
All contracts and conditions will be agreed with the UAC to ensure that the members of the union are confident that the insurance is reliable and accurate, and that insurance payments will be made on time and in full. The relevant agreements are enshrined in the Memorandum of Cooperation signed between the UIA and INGO Insurance Company on the eve of 2022.
"The global goal of the Memorandum is to accelerate the development of state-assisted agricultural insurance, which is being introduced in Ukraine. Establishment of best practices of responsible behavior of both insurers and insureds, formation of favorable and fair tariffs," the document says.
According to UIA Chairman Andriy Dykun, the development of agricultural insurance is a strategic issue. Its successful implementation has a direct impact on the stability, planning and success of the agricultural sector.
"This is perhaps the most important issue after the opening of the land market. After the drought that occurred in the South of Ukraine in 2020, when up to 90% of the crops were lost on farms, it is clear that without the development of agricultural insurance, the future of the Ukrainian agricultural sector may be sad," said the UIA Chairman.
According to Oleksandr Matsak, Deputy Chairman of the Board of INGO Insurance Company, global experience shows that the agricultural sector is a priority for most developed countries, so its development is strongly supported at the state level, in particular through insurance compensation.
"Now this mechanism has been launched in Ukraine. We have the necessary legal framework and budgetary funds, which makes its implementation realistic," he added.
Mr. Matsak assured that INGO has everything it needs to provide high-quality insurance coverage to agricultural enterprises, even to such a systemic organization as the All-Ukrainian Agrarian Council.the company has many years of expertise in agricultural insurance, qualified staff and reliable reinsurance in Western reinsurance companies with a high rating.
In order to provide farmers with access to a quality insurance product this spring, experts from the UAC and INGO are developing a roadmap for further cooperation and state-supported agricultural insurance programs, taking into account the real needs and interests of small and medium-sized farmers. The results will be presented in early 2022.
The All-Ukrainian Agrarian Council (AAC) is a voluntary, non-governmental association. The Union was created on the basis of unity of interests for joint realization of rights, freedoms and protection of legitimate social and economic interests of its members.
The UAC was founded in June 2014 and is currently the largest and most effective public union. The association includes more than 1100 medium and small agricultural enterprises from all over Ukraine. The total area of the land fund of its members is more than 3.5 million hectares
"INGO has been operating in the insurance market since 1994 and is among the largest insurance organizations in Ukraine in terms of premiums, own assets and insurance claims.