Agricultural insurance cover only 17% of the market
Only 1.8 million ha were covered by insurance between the years 2006 and 2007,
from a total of 10.5 million ha that could have been insured. As a result,
the coverage was only 17%.
Although half of all premiums were supported by
the Government, the agricultural insurance segment grew by only 25% compared
to last year, while premiums dropped by 20%.
"It is clearly visible that the Government stimulated insurance in this
sector with the help of Law 381/2002 and HG 807/2005 (which modified HG 74/2003),
yet the areas covered by insurance increased by only 20% to 25% compared to last
year", Anghel BURGHILA, Manager of The Agricultural Insurance Division for
EUROINS Romania, declared.
The fact that this type of insurance does not hold a large fraction of portfolios
is direct result of the lack of legislation.
Having this in mind, perspectives are still optimistic. Aver 60% of those who
answered "question of the week" on 1asig.ro expect a substantial
grow in this sector over the next years.
The problems and solutions of agricultural insurance, the laws that must be
implemented and the rising cases of catastrophic risk in Romania will be the
subject of the 5th edition of ICAR - The International Catastrophic Risks Forum.
The 2008 edition of ICAR Forum, the most well-known European event dedicated
to catastrophic risks will take place on the 14th of October, at the Parliament
Palace in Bucharest.
Author: Andreea IONETE
on 21.07.2008
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