Fund for agricultural insurance to appear in Azerbaijan
Baku, Azerbaijan, Sept. 20
By Azad Hasanli – Trend:
A single institution, which will oversee the sphere of agricultural insurance, will appear in Azerbaijan, Aliya Azimova, head of IFC (International Finance Corporation) Baku office, told Trend.
Currently, the IFC, together with Azerbaijan’s Ministry of Agriculture and the Financial Market Supervisory Authority, is working on a project to introduce an agricultural insurance system in the country.
“At the moment, we are working to improve the legislation in this sphere,” she said. “Negotiations are also underway to choose an institution that will oversee the sphere of agricultural insurance.”
She added that most likely, the institution will be created on the basis of an insurance pool and will operate as a fund, which will include insurance companies operating in Azerbaijan [there are 22 of them in the country].
The fund, along with overseeing this sphere, will also develop new insurance services, she noted.
“We are also collecting information for assessment of risks in the sphere of agricultural insurance in order to prepare first insurance services in the next year,” she added.
Azimova said that the government of Azerbaijan is inclined to use the Turkish model of agricultural insurance, which is called TARSIM. As part of the work on the project, the IFC is looking for the most appropriate options to introduce this model in Azerbaijan, she noted.
Azerbaijan has been cooperating with the IFC since 1995. During this time, the IFC granted loans worth $473 million to Azerbaijan for implementation of 56 projects.