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Official News

Wednesday, 7 February 2018

PM Discusses Introduction of Insurance System in Agriculture with International Experts


Prime Minister Karen Karapetyan received a delegation led by Bernhard Matthias Kiesler, Ambassador Extraordinary and Plenipotentiary of the Federal Republic of Germany to the Republic of Armenia. The delegation consisted of representatives of German Development Bank (KfW), MF Strategy, MicroInsurance Centre and AgroConsulting, and Re and Agroinsurance International (Switzerland) reinsurance organization.

Following the tender announced by the KfW Bank, a consortium consisting of the aforementioned 3 companies was selected to prepare a pilot agricultural insurance program in cooperation with the Ministry of Agriculture and the Central Bank of Armenia.

Thanking the German government for assistance with the initiative, Karen Karapetyan expressed readiness to expand cooperation in other related spheres as well. Presenting the reforms underway in this field, the Prime Minister noted that his government’s goal is to have an efficacious and smart farming sector, with insurance being one of its key components. The Premier said in order to reduce the risks, a pilot project for introduction of anti-hail missile systems is being implemented in Armenia.

According to the German Ambassador, the agricultural insurance program is innovative and promising, and the Government of the Federal Republic of Germany is ready to continue assisting the Armenian government in all areas of mutual interest. KfW representative Monica Guntner welcomed the Government’s commitment to implement sustainable long-term development projects in the agricultural sector, noting that the German Development Bank is keen to build close ties of cooperation with Armenia and implement prospective initiatives.

The interlocutors exchanged views on the relevant action plan and the agenda of the forthcoming discussions between the Armenian Ministry of Agriculture, the Central Bank, insurance market representatives and international experts.

KfW will provide a 5 million euro grant for the pilot project, which will be co-financed to the same extent from the State budget of the Republic of Armenia. The proceeds will be used to subsidize insurance payments.
 

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