Agro Perspectiva

Ukraine: sharp agrarian insufficiency

30.03.2007 09:36 "Agro Perspectiva" (Kyiv) — At session of committee of League of the insurance organizations (LSOU) Ukraine unfavourable results of work of the insurance companies (SK) in the market agrostrakhovaniya in 2006 have been declared(announced). So, the total amount of the collected premiums in this segment has made nearby 30 million grn at possible(probable) 1–2 billion grn (10 ãðí=51,37 rbl.). Insurers consider(count), that the reason of an inefficiency of their work is caused by bureaucracy at repayment from the budget of a part of the means spent by landowners on the insurance, and unwillingness selkhozkompany to insure the risks, writes " Kommersant — Ukraine «. On results of activity of insurers in the market agrostrakhovaniya in 2006, for the last year zastrakhovannaya the area of crops selkhozkultur has increased all up to 3,4 % (in 2005 — 2 %). Thus the quantity(amount) of the companies working in this market, has grown with 28 up to 37 — one insurer on the average zastrakhoval 33 facilities(economy) a total area 18 thousand in hectares. 7 companies — „Oranta“, TAS, „Credo-¬½áßß¿¬“, „Aska“, „áß¬“-ñ»¡íáß-NORTHERN", — have collected «Standard» and «Bill» more than 10 million grn premiums (35,3 % from all payments) and have concluded 80 % of all contracts (1778). Thus, the volume of the market has exceeded 30 million grn. " Essential changes in qualitative and quantity indicators of insurance has not occured(happened) ", — the vice-president of committee LSOU concerning insurance of risks in agrarian sphere Valentine Gusarevich has recognized. It(he) has noted, that the greatest relative density in insurance selkhozkultur had " the most profitable and whimsical culture " — raps and wheat (was zastrakhovano 17,6 % of crops rapsa and 7,6 % of wheat). In 2006 landowners have started to insure cultures which earlier were not insured or insured in small volume, for example flax, a sugar beet, corn and sunflower. In 2007 the Ministry of Ukraine has established(installed) for landowners 50 %-s’ indemnification of the paid insurance premiums for zastrakhovannye risks of destruction of a crop of agricultural production, having provided on these purposes in the budget 50 million grn (in the budget-2006 — 10 million grn). Insurers negatively estimate(appreciate) slow development of the market, the volume of which insurance gathering could make, according to president NASK «Oranta» Alexander Zavady, at least 1–2 billion grn in a year. " The general(common) result of last two years for insurers negative, — is spoken by chairman of board SK " Àñêà " Alexander Sosis. — the Companies have paid more, than have received ". Insurers are assured, that the reason of weak development of the market — in bureaucratic obstacles by granting state indemnification. It does not stimulate landowners to insure crops. Besides in A.Sosisa’s opinion, landowners will not be insured, while the ground does not become a subject of the mortgage and sale and purchase (the moratorium on its(her) sale operates(works) till 2008). In this case selkhozproizvoditel can give the ground in the mortgage to bank under the received credits and in case of a poor harvest due to insurance payments to extinguish them, not having lost the ground. Now, according to chairman of board SK " Bill " Vasily Furmana, many companies do not insure a crop, including, " that it is dear(expensive) ". Chairman of board of insurance group TAS Valery Suksin is assured(confident), that on results of 2007 the market selkhozstrakhovaniya nevertheless will grow on 30–40 %. Growth at a level of 50–100 % can be provided by expansion of presence SK in regions (more than in half of regions in 2006 worked only two SK), activization of work with banks and correct calculation of risks in this kind of insurance for reduction of its(his) unprofitability. " It is necessary to collect necessary for aktuarnykh calculations the information on risks in a regional cut(section), by kinds of agricultural products, on the basis of these(it) given to develop programs of insurance and to bring respective alterations in the law, — Alexander Zavada is assured(confident). — In total amount of insurance payments selkhozstrakhovanie borrows(occupies) much less than 1 percent(interest). It is enough this figure to be convinced, that we do(make) something not so ".