In 2020, agricultural risk insurance turned out to be one of the fastest growing segments among all areas of property insurance in the Russian Federation - the volume of the agricultural insurance market increased by 43% over the year and reached 8,1 billion rubles. This was confirmed by the data of the Bank of Russia published on March 5 on the results of the work of the country's insurance companies last year.
For comparison, a year earlier the volume of premiums for agricultural insurers on all types of agricultural risk insurance contracts reached 5,6 billion rubles. “The main locomotive of agricultural insurance growth, as in previous years, continues to be insurance with state support,” comments the President of the National Union of Agricultural Insurers Korney Bizhdov. - The volume of accrued premiums under subsidized contracts in 2020 increased by 54% - to 6,7 billion rubles from 4,4 billion a year earlier. At the same time, the data of the Bank of Russia confirmed a significant increase in the accrued premium for insurance with state support in all industry areas. Under crop insurance contracts, the volume of fees increased by 64% - to 5,0 billion rubles from 3,0 billion rubles in 2019, on insurance of agricultural animals - by 27%, to 1,7 billion rubles from 1,3 billion a year earlier. Also in 2020, for the first time, fish farming insurance contracts were concluded on the basis of state support, the premium in this segment reached 60 million rubles. "
“Let me remind you that since 2019, the agricultural insurance system has been restored on the basis of an updated legislative framework after a period of recession in 2017-2018, which was provoked by a change in the order of state support - the so-called“ single subsidy ”procedure. For more than two years now, the organization of the agricultural insurance system in the regions, including the subsidizing process, has been under the constant control of the Ministry of Agriculture of Russia, the Bank of Russia, and the Ministry of Finance. In particular, the amount of subsidies increased in 2020 by 30% - to 2,3 billion rubles from almost 1,8 billion rubles in 2019, ”the President of the NSA noted.
The volume of premiums under agricultural insurance contracts without state support also increased in 2020 - to 1,34 billion rubles from 1,27 billion a year earlier. “Although the increase in premiums on unsubsidized contracts is only 5%, the positive dynamics in this area is essential,” emphasizes Korney Bizhdov. - Earlier, in 2019, with the restoration of the organization of state support, there was a "flow" of a part of agricultural risk insurance contracts to the subsidized segment. Insurance without state support is mainly associated with the acquisition of additional insurance coverage to the contract concluded on the standard terms of the agricultural insurance system with state support. "
The growth of the agricultural insurance market was accompanied by a commensurate increase in payments. The volume of payments under agricultural insurance contracts of all categories that were transferred to farmers in 2020 increased by 53% - to more than 3,0 billion rubles from 2,0 billion a year earlier. Of these, 2,3 billion rubles, or 76% of the volume of all paid insured losses, the insurers paid to farmers under contracts concluded on the basis of a unified agricultural insurance system - with state support. The volume of payments on policies with state support increased more than 4 times compared to 522 million rubles in 2019. “The growth of insurance payments during 2020 is associated with an unfavorable agricultural season for the southern regions of Russia, as well as with an increase in insurance coverage of the agro-industrial complex in general,” said NSA President Korney Bizhdov. - Due to the peculiarities of the organization of agricultural insurance, payments that occur during the year are largely related to contracts that were concluded in the previous period. Let me remind you that in 2019 agricultural insurers received an insurance premium of 5,6 billion rubles, which is 51% more than a year earlier. A year later, this growth was reflected in insurance payments ”.
“In 2021, the NSA expects a further increase in the growth of the agricultural insurance market due to an almost twofold increase in subsidies and the positive experience of farmers in a number of regions who received insurance payments. The dynamics of development will also significantly depend on the adoption of the draft law on the introduction of insurance for farmers in case of loss of crops as a result of emergencies, ”said the President of the NSA Korney Bizhdov.
According to Federal Law No. 260-F3 "On State Support in the Field of Agricultural Insurance", in Russia, within the framework of a centralized system, state support is provided for insurance of risks in crop production, livestock farming and commercial aquaculture. Since January 1, 2016, a single all-Russian association, the National Union of Agricultural Insurers, has been operating on the agricultural insurance market with state support. Only insurance companies-members of the union have the right to conclude insurance contracts with state support; insurance is carried out on the basis of uniform standard rules for each insurance program.