The Ministry of Agriculture expects the growth of agricultural insurance after amendments to the law on state support in this sphere
The 1st March of 2019 came into force the Federal Law No. 563-FZ “On State Support in the Field of Agricultural Insurance”.
In particular, the law provides the possibility of making insurance contracts with state support in case of risk of loss (death) of the crop, perennial plantings, farm animals as a result of the events dangerous for agricultural production. Also there is a mandatory unconditional deductible established , the minimum amount of which cannot be less than 10% of the insured sum. This will ensure the payment of insurance compensation with minimal crop loss. In addition, the changes imply an increase in the maximum amount of the unconditional deductible from 30% to 50% of the sum insured and the expansion of the list of insurance events.
As a result, the Ministry of Agriculture of Russia expects the rise of cheaper and more attractive insurance products, as well as a growing interest among farmers and insurance organizations in agricultural insurance, including areas of high-risk agriculture.
According to the forecasts of the Russian Ministry of Agriculture , the implementation of these measures will increase the share of insured livestock of farm animals by 2020 to 16.7%, and by 2025 - to 26.1%. The share of insured acreage will increase to 4.2% by 2020 and to 11.3% by 2025.