agricultural insurance statistics – international experience introduction of new programs and...
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Agricultural Insurance Statistics Agricultural Insurance Statistics – International Experience– International Experience
Introduction of New Programs Introduction of New Programs and Informational Supportand Informational Support
www.agroinsurance.com – Agricultural Insurance and Risk Management – Agricultural Insurance and Risk Management PortalPortal
Roman Shynkarenko, Project Manager www.agroinsurance.com
February 6, 2007
The purpose of collecting The purpose of collecting statistical informationstatistical information
Comparison of quantitative program results within the yearsComparison of quantitative program results within the years
Identification of tendenciesIdentification of tendencies
Assessment of products demandAssessment of products demand
Understanding the problem aspectsUnderstanding the problem aspects
Modification and improvement of the insurance productsModification and improvement of the insurance products
More accurate assessment of the necessary government More accurate assessment of the necessary government
funds for subsidization of agricultural insurance programsfunds for subsidization of agricultural insurance programs
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Development of agricultural insurance market in Italy
2000 2001 2002 2003 2004
Number of policies 251,584 218,067 221,872 211,542 11,408
Insured crops (value) 93,412,000 133,436,000 142,829,000 139,938,000 165,018,000
Insured area 1,037,000 1,005,000 933,000 950,000 989,000
Insurance sum € 000's 3,500,383 3,232,128 3,216,803 3,333,901 3,604,258
Premiums collected € 000's 258,539 244,728 269,617 277,039 269,483
Average premium rates % 7.39 7.57 8.38 8.31 7.48
Loss € 000's 213,374 211,267 173,684 116,633 169,570
Loss ratio % 82.5 86.3 64.4 42.1 62.9
Example of statistical data in Italy (new dynamically-developing market
in Europe)
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Volumes, premiums and loss by crops in 2004
Share Premiums Average premium rate
Loss share Loss ratio
% % % % %
Grain crops 27.5 14 3.82 7.3 32.9
Grapes 25.1 20.8 6.2 29.9 90.4
Fruits 25.3 44.3 13.1 46.1 65.4
Vegetables and potato 14.8 12.9 6.55 12.6 61.5
Industrial crops 6.5 7.4 8.48 3.8 32.4
Olives 0.5 0.3 4.58 0.2 42.5
Seeds 0.3 0.2 4.35 0 14.1
Total 100 100 100 100
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Example of statistical data in Italy (new dynamically-developing market
in Europe)
Risk statistics in 2004
Risk Number of policies
Area (ha) Value Premium sum Average premium rate
Loss Loss ratio
€000 €000 % €000 %Hail 198,153 931,000 3,294,198 249,137 7.56 153,308 61.5
Freeze 894 3,000 25,852 4,826 18.67 - 0Hail, freeze, storm, other perils
166 5,957 425 6 > <10 18 4.2
Hail and storm 11,723 53,000 269,060 14,214 5.28 15,867 111.6
Multi-peril coverage (MPCI)
472 1,000 9,189 880 9.58 376 42.7
Greenhouses 549 127,609 582 0.46 36 6.2
Example of statistical data in Italy (new dynamically-developing market
in Europe)
The data is collected on all products, crops and coverage The data is collected on all products, crops and coverage levels. The table represents just a small example of levels. The table represents just a small example of statistical data. Source – RMA USAstatistical data. Source – RMA USA
Statistics in the USA(the biggest agricultural insurance
market in the world)
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The results of federal crop insurance program (subsidized) in the USA in 2005-2006:
2006 2005
Insured area (thousand of acres) 242,104245,866
Insurance sum (000 US dollars) 49,925,65144,267,155Premiums collected (000 US dollars) 4,577,903
3,949,421Subsidy (000 US dollars) 2,680,939
2,343,974Premium paid by producers (%) 41,4%40,7%Premium paid by the government (%) 58,4%59,3%Pay-outs (000 US dollars) 2,823,017
2,358,501Loss ratio (payouts in % to premiums) 62%60%
Preliminary results were informed at the beginning of January ,2007!!!
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Statistics in the USA(the biggest agricultural insurance
market in the world)
Statistical data on mandatory crop insurance program in Kazakhstan in 2006
(publicized at the end of January 2007)
Indicators 2005 2006 (+;-)
Total area, 000 ha 14716,6 14885,0 168,4
Insured area, 000 ha 9586,2 9295,3 -290,9
Number of policies 20931 12850 -8081
Area insured, % 65,1 62,4 -2,7
Premiums collected, million tenge 756 668,9 -87,1
Payouts, million tenge 914,92 177,75
Compensated payouts by the State Agency, million tenge
408,75 46,18
* Exchange rate 125,98 tenge = 1 USD
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Statistical data on the federal crop insurance program (subsidized) in Russia
in 2006(basic information was presented at the round-table
on January 24, 2007)
0
20
40
60
80
100
120
2004 год 2005 год 2006 год
Поступившие страховые взносы
Выплаченное страховоевозмещение
(П р едв ар и тел ьн о)
11588,2 11966,7
16402,1 17500
0
2000
4000
6000
8000
10000
12000
14000
16000
18000
491844,07
958580,6
2208606,3
3570715
6597111
5813926,4
0
1000000
2000000
3000000
4000000
5000000
6000000
7000000
In 2006 the producers insured 33% of the total cultivated area (17,5 million ha)
Number of farms insured increased from 2240 in 2001 to 10665 in 2006
The sum of premiums collected increased from 491 million RUR (2001) to 5,8 billion in 2006.
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Insurance Statistics in Other Insurance Statistics in Other CountriesCountries
CanadaCanada – – the data is collected on all crops, products the data is collected on all crops, products and coverage level at each provinceand coverage level at each province. . The results of The results of the crop insurance products are made public after the crop insurance products are made public after data processingdata processing ( (agricultural insurance and financeagricultural insurance and finance))
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Statistics in other Statistics in other countriescountries
Spain Spain – – statistics is present for years starting from statistics is present for years starting from 1980 1980 when the subsidy program was introduced. The data is when the subsidy program was introduced. The data is present on the crops, risks, products and regions similar to present on the crops, risks, products and regions similar to the USA.the USA.
Germany, France, AustriaGermany, France, Austria and other countries and other countries – – statistical statistical data is less developed than in the countries with extensive data is less developed than in the countries with extensive crop insurance programs mostly because of lack of crop insurance programs mostly because of lack of government involvementgovernment involvement
Graph – loss volumes in France during 1908-2006. Source – presentation at Madrid conference in November , 2006
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Informational SupportInformational Support
The quality of informational support and media coverage in The quality of informational support and media coverage in Ukraine is worse than in some CIS countries. However CIS Ukraine is worse than in some CIS countries. However CIS countries do not have sufficient public information (statistics and countries do not have sufficient public information (statistics and facts) like it is seen in the developed countries (USA, Spain, facts) like it is seen in the developed countries (USA, Spain, Canada)Canada)
The media provides mostly image information and press-releasesThe media provides mostly image information and press-releases
The web-site of insurance companies do not provide enough of The web-site of insurance companies do not provide enough of information about the companies’ activities in agricultural information about the companies’ activities in agricultural insurance segmentinsurance segment
The web-sites updated irregularlyThe web-sites updated irregularly
It is necessary to provide more information for publicizing It is necessary to provide more information for publicizing agricultural insurance programs.agricultural insurance programs. The insurers underestimate the The insurers underestimate the role of mass media in the development of agricultural insurancerole of mass media in the development of agricultural insurance
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