RON 88 million for agricultural insurance in the crop year 2007-2008
 Insurance companies posted underwritings for agricultural insurance exceeding RON 88 million in the crop year 2007-2008, with over RON 34 million more than in 2006-2007 period, according to data provided by UNSAR - National Association of Insurance and Reinsurance Companies from Romania. The amount represents cover for autumn crops and for the spring crops between the 1st of September 2007 and the 31st of July 2008.
Also, around RON 55 million of the total gross premiums have been written for the fall crops. In the same period, the insured area has been around 4.3 million hectares, out of which over 2.8 million hectares were for the autumn crops.
"From the last years' experience, the insured area of autumn crops is almost equal to that of spring crops. Removing subsidies for the insurance premiums starting August 2007 and granting farmers a financial support only for crops established in the autumn of 2007 - with the obligation to insure those crops - led to an unbalanced structure of the insured crops. Without receiving support for spring crops, farmers have not bought insurance anymore", Florentina ALMAJANU, UNSAR's General Director has stated.
This situation has generated significant losses both for farmers, so those who have suffered damage have not recovered the investments made in the spring, as well as for insurers because of the irregular distribution of risk, the official added.
This unbalance in the distribution of risk is explained by the fact that the production of an event is differently affecting spring or autumn crops because they are in different stages of development, with specific degrees of sensitivity to the effects of a meteorological phenomenon as hail, for example.
Agricultural insurance still holds a very small share in the total underwritings despite significant potential.
Nevertheless, the prospects are optimistic, over 60% of the participants in a poll conducted by 1asig.ro are expecting for this insurance class a growth at least equal to the average market growth in the next years.
Author: Andreea IONETE
on 02.09.2008
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