The Parliament adopted draft law No.5104 that improves the agricultural production insurance system in the second reading. BRDO experts actively participated in drafting the document.
Why is this important?
The agricultural complex annually provides at least 39% of Ukrainian export revenues. Its successful operation is the key to the successful economy of the whole country.
At the same time, the agriculture sector is specific: it is characterized by low turnover, high risks, and significant dependence on natural factors. Ukraine should help increase the area of insured agricultural lands to ensure the financial stability of producers in unstable weather conditions.
In this aspect, it is important to have a comprehensive approach with the active participation of the state, ensuring an increase in insured areas from 3% (Ukraine, data for 2018) to 65-80% (indicators of developed countries).
What does law No.5104 provide for?
- the possibility of obtaining state support for insurance of agricultural products;
- standardization of insurance procedures;
- diversification of insurance products and services (in particular, index insurance development);
- prerequisites for the development of income insurance services;
- clear definition of participants in the agricultural insurance market with state support; insured objects, insurance risks, and cases;
- canceling the operation of the infamous Agrarian Insurance Pool and clarifying the powers of the body responsible for state insurance activities supervision.