Azerbaijani Financial Market Supervisory Authority reveals new agricultural insurance mechanism (Exclusive)

Baku, Azerbaijan, May 15

By Aysham Rustamova – Trend:

A new agricultural insurance mechanism will be launched in Azerbaijan till late 2020, Firdovsi Agashirinov, head of the Insurance Supervision Department of the Financial Market Supervisory Authority of Azerbaijan (FIMSA), told Trend.

“Turkey’s and Spain’s agricultural insurance mechanisms were chosen as samples for the development of the bill on agricultural insurance,” he said.

“The task of creating an agricultural insurance mechanism has been set before both FIMSA and the Ministry of Agriculture,” Agashirinov said. “A working group has been created to review the international practice. The advanced models of agricultural insurance of Spain, Turkey, the US, Canada and Israel have been considered.”

“However, the attention was also paid to the negative moments in these mechanisms, so that we act flawlessly in the future taking into account the mistakes,” he said. “The draft law on agricultural insurance has been prepared on the basis of these models, taking into account Azerbaijan’s peculiarities.”

In his words, after the law enters into force, agricultural insurance will be used on the basis of a mechanism of cooperation between the state and the private sector and will be implemented through a joint insurance system. The agrarian insurance will be managed via an e-information system.

He continued by saying, "A group of experts specializing in agricultural insurance will be set up. Today, insurance companies render agricultural insurance services individually, and reinsurance companies are not interested in providing them. After the new mechanism is applied, insurance services will be rendered on a vast scale, rather than individually, which will be interesting and attractive for reinsurance companies."

Agashirinov stressed that in accordance with the new law, each direction of the agricultural sector, be it animal husbandry or crop production, will be regulated according to its rules.

“There will be separate acts and rules for each sector,” he added. “There will be methodologies and rules for risk assessment and damage management. The experts will work according to these regulations. The representatives of the Ministry of Agriculture, Ministry of Finance, Ministry of Economy and FIMSA work together on these issues.”

“To attract independent experts, FIMSA is negotiating with the Azerbaijan State Agrarian University,” Agashirinov said. “The work is underway to create an independent expert institute for agricultural insurance.”

“The law also envisages the subsidization of insurance premiums, one part of which be paid by the farmer and the other by the state,” he added. "This also implies guarantees for reinsurance on the accumulated funds.”

“The state guarantees will be a step higher than reinsurance,” Agashirinov added. “This is a new mechanism. Thus, the problem of ensuring the protection of farmers from risks will be solved. At the same time, the burden of the state will decrease and the sustainability of agricultural production will be ensured.”

He noted, “There will be conditions for the growth of financial opportunities, the level of urbanization will decrease, and food security will be enhanced. All these advantages will be possible after implementation of the new agricultural insurance system.”

Subscribe to Trend in Google News! Subscribe
Volume of cargo shipment via Turkish ports from Morocco for 10M2021 revealed
Volume of cargo shipment via Turkish ports from Morocco for 10M2021 revealed
Ministry shares data on volume of cargo shipment via Turkish ports from Belgium for 10M2021
Ministry shares data on volume of cargo shipment via Turkish ports from Belgium for 10M2021
Turkey discloses volume of cargo shipment via its ports from Germany for 10M2021
Turkey discloses volume of cargo shipment via its ports from Germany for 10M2021
Loading Bars
Latest
Death toll from Java volcanic eruption rises to 22
IOC respects US’ decision to boycott upcoming Beijing Olympics
Mixing Pfizer, AstraZ COVID-19 shots with Moderna gives better immune response -UK study
France extends mask mandate in schools, orders nightclubs to close
UN chief names US diplomat Stephanie Williams to run Libya mediation
Iran ready for resultative talks on nuclear deal - top diplomat
Israel reports 10 new cases of Omicron variant
New York mayor plans vaccination mandate for private-sector employers
Russia, India to expand energy cooperation, says statement
IRICA reveals data on Iran’s trade turnover with ECO member states
Raisi: Iran welcomes development of ties with UAE
Uzbekistan, Kazakhstan identify priority issues for cooperation
Saakashvili: reconciliation is the best option for everyone
Azerbaijan sends 100,000 vaccines to Burkina Faso
US announces diplomatic boycott of 2022 Beijing Olympics
Azerbaijani FM, US Assistant Secretary of State discuss latest situation in region
Armenia seen that, whole world seen that, no-one has been able to stop us - President Ilham Aliyev
Israel lifts tariffs on dairy imports to cut prices
Young grew up who did not see Karabakh, they liberated Karabakh at cost of their lives – President Ilham Aliyev (VIDEO)
Azerbaijani Minister of Youth and Sports talks about appointment of new deputy minister
I tell them to give us date of when Zangazur corridor will be opened - President Ilham Aliyev to Armenia (VIDEO)
Azerbaijan discloses volume of oil exported to Turkey in 10M2021
Azerbaijani deputy defense minister leaves for Moscow
Forecast of Azerbaijani State Oil Fund’s total management costs for 2022 revealed
Turkmenistan approves anti-crisis program for 2022
Volume of cargo shipment via Turkish ports from Morocco for 10M2021 revealed
Ministry shares data on volume of cargo shipment via Turkish ports from Belgium for 10M2021
Volume of cargo shipment via Turkish ports from China for 10M2021 unveiled
Turkey discloses volume of cargo shipment via its ports from Germany for 10M2021
Cost of goods transported via sea up in Azerbaijan
President Ilham Aliyev, First Lady Mehriban Aliyeva visit monument to national leader Heydar Aliyev in Guba (PHOTO/VIDEO)
SOFAZ asset management revenue forecast for 2022 unveiled
Iran's Energy Exchange announces products to be on sale on December 7
Azerbaijan is creating social zone in industrial park of liberated Jabrayil district- ministry
Turkmenistan continues oil prospecting work on Cheleken peninsula
Uzbekistan shares data on import of potatoes in 10M2021
Price indexes of construction, trade sectors at Uzbek stock exchange fall
Galt & Taggart shares data on Georgia’s bonds on London Stock Exchange
Uzbekistan unveils volume of exports and imports
Georgia’s persimmon exports continue to increase
Russia remains main importer of Georgia’s tangerines
Uzbekistan reveals volume of tomato exports for 10M2021
Uzbek Statistics Committee shares data on foreign trade turnover
Kazakhstan’s oil and gas company opens tender to supply electric pump
Turkey discloses volume of cargo shipment via its ports from Albania for 10M2021
Eurostat reveals data on Czechia's import of petroleum oils from Azerbaijan
Vegetable pathogen detected in batch of pepper imported to Azerbaijan
Kazakhstan’s National Bank discloses inflation expectations
Turkmenistan talks demand on local aviation, lighting kerosene among foreign clients
Azerbaijan Academy of Sciences talks demographic indicators of Karabakh, East Zangazur
Kazakhstan talks forecasted growth level of GDP for late 2021
All 6 Israel policymakers voted to keep key rate at 0.1%
Iran reaches increase in load/unloaded operations at Amirabad port
Azerbaijan shares data on number of vaccinated citizens
Azerbaijan confirms 585 more COVID-19 cases, 944 recoveries
Iran's Bahar Azadi gold coin price continues to rise full speed
Eni Turkmenistan Ltd to purchase spare parts for pumps via tender
Azerbaijan talks 4G network coverage in liberated territories
Iran’s Nakhlak Lead Mining Complex boosts production
Kazakh-Chinese bitumen plant opens tender for vehicles rent
Act of amnesty covers 16 foreign citizens in Azerbaijan
Tesla did not want to wait on EU aid - German economy minister
Austrian President swears in Karl Nehammer as new Chancellor
Iran’s CBI general director talks foreign currency exchange activity data
Unemployment in Israel fell sharply in November
Oil and gas production dep’t of Turkmenistan’s Turkmennebit SC exceeds production plan
Volume of natural gas transportation via Serbian-Hungarian interconnector revealed
Field rearranging underway on Serbian-Hungarian gas interconnector route
Iran not to follow 'plan B' while in Vienna nuclear talks - FM
Georgian business sector sees increase in turnover
Kazakh National Bank announces its decision for base rate
Kazakhstan reveals GDP growth in 10M2021
Azerbaijan working on flight recorder of crashed helicopter - Prosecutor General's Office
UK to block poor-performing companies from winning public work
Croatia confirms its first two cases of COVID-19 Omicron variant
Balacans Agro Food LLC, Azerbaijan Investment Company sign agreement (PHOTO)
Azerbaijan to consider joining int'l documents on intellectual property protection
Oil majors to mitigate demand fluctuation with digital twins
SOFAZ sees significant increase in Shah Deniz revenues
Azerbaijan shares data on number of freed convicts as part of act of amnesty
Annual inflation rate slightly slows down in Kazakhstan
SOFAZ discloses revenues from Azeri-Chirag-Gunashli
Azerbaijan shares data on number of people covered by Act of Amnesty so far
TBC Capital publishes Georgia’s weekly economic review
Oil rebounds above $71 on Omicron hopes, Iran talks
President Ilham Aliyev, First Lady Mehriban Aliyeva meet with residents of Gonagkand settlement (PHOTO/VIDEO)
Israeli firm to sell HSBC Tower in New York for $855 million
Iran reveals COVID-19 data for December 6
President Ilham Aliyev, First Lady Mehriban Aliyeva view conditions created at secondary school № 1 in Guba (PHOTO/VIDEO)
President Ilham Aliyev, First Lady Mehriban Aliyeva attend opening of Guba Abad Factory enterprise (PHOTO/VIDEO)
President Ilham Aliyev inaugurates Guba-Gonagkand highway (PHOTO/VIDEO)
President Ilham Aliyev and First Lady Mehriban Aliyeva view conditions created at Guba Olympic Sports Complex (PHOTO/VIDEO)
Crisis center discloses 32,136 new coronavirus cases in Russia over past 24 hours
Chevron to expand investments in Kazakhstan’s Tengiz field dev't
Famous scientist talks about significance of victory in Azerbaijan’s Karabakh (PHOTO)
Iran shares data on cargo transportation
President Ilham Aliyev and First Lady Mehriban Aliyeva arrive in Guba district for visit (PHOTO/VIDEO)
Azerbaijan prepares bill on repatriation of people to Karabakh – state committee
Azerbaijani State Oil Fund’s estimates on oil, gas transportation revenues for 2022 unveiled
Azerbaijan gives update on mine clearance work in liberated lands
All news