Programme for the introduction of agricultural insurance

active

The overarching development policy objective of the FC measure is to contribute to insurance protection against climate risks for poor and poverty-prone beneficiaries in Armenia and thereby implicitly contribute to adaptation to climate change (strengthening resilience) as well as to food security and poverty reduction. The aim of the FC measure (outcome) is to create needs-based (agricultural) insurance solutions to protect against extreme weather events and to ensure the use of insurance by the target group. This is intended to reduce the vulnerability of households and farms particularly affected by climate change to extreme weather events. The target group is poor and vulnerable households who are self-employed in the agricultural sector or on farms. The project is part of the G7 InsuResilience initiative. The FC project finances the subsidization of insurance premiums for the insurance contracts sold to the target group on a pari passu basis with a grant from the Armenian government. As part of the FC project, an implementation consultant is supporting the establishment of an independent authority (National Agricultural Risk Management Agency) that will be responsible for the sustainable provision of agricultural insurance in Armenia in the medium to long term. It is planned to provide an FC grant of EUR 5.339 million to the Armenian government. The project sponsor will be the long-standing professional FC partner, the Central Bank of Armenia.