Agrarian Insurance Fund to strengthen insurance market - Minister


December 25, Fineko/abc.az. The beginning of application of the agricultural insurance mechanism in Azerbaijan should be considered as one of the main factors ensuring the development of agriculture.

ABC.AZ reports that the statement was made at a media conference by Agriculture Minister Inam Kerimov.

Referring to the Law on Agricultural Insurance passed by Milli Majlis, the minister pointed out that the Cabinet Ministers endorsed the Charter of the Agricultural Insurance Fund and the Resolution on composition of the subject of agricultural insurance.

"Thus, for the first time our country formed a legal framework for the large-scale application of the agricultural sector has been formed. The mechanism of agricultural insurance in Azerbaijan is built on the experience of Turkish model TARSIM. This model is based on public-private cooperation. The government will undertake the insurance risks through the agricultural insurance authority and will redistribute part of them through private insurance to the private sector. The AIF will take part in the insurance process on products specified in Cabinet’s Resolution on the composition of the subject of agricultural insurance, and will undertake 50% of the risk. Joint insurance of products by the AIF and private insurance companies will reduce investment risks, strengthen state support for farmers, have a positive impact on employment, contribute to food security and strengthen the insurance market.

Azerbaijan is expected to launch the introduction of the agricultural insurance system starting from 2020.