In Ukraine, the rules of insurance of agricultural products with state support will be updated: key changes

The National Bank of Ukraine (NBU) plans to update the requirements for the insurance of agricultural products, which is provided with state support, taking into account the needs of the agricultural sector in wartime and the changing economic situation.

As the press service of the National Bank of Ukraine reports, a draft amendment to the Regulation on insurance of agricultural products with state support has been submitted for consideration. This document, developed in accordance with the new Law of Ukraine "On the peculiarities of insurance of agricultural products with state support", provides for the easing of conditions for insurance companies and the adaptation of their activities to the challenges that arose under martial law.

In the updated document, special attention is paid to taking into account the experience of insurers working in the market during the war. This is important because in recent years the volume of agricultural risk insurance has remained low. One of the reasons for this was the lack of government support for insurance, as well as difficulties in accessing the international reinsurance market, which made insurance less affordable for farmers.

Taking into account these factors, the National Bank of Ukraine proposes to reduce the requirements for the availability of insurance premiums and payments for insurers that continue to work in the agricultural market after 2022. This should simplify the conditions for those who plan to insure crops and other types of agricultural products, as well as attract new players to the agricultural insurance market.

In addition, it is envisaged to cancel the special procedure for the formation of insurance reserves for insurers that provide services for the insurance of agricultural products with state support. Instead, such companies will have to fulfill the general requirements for insurance reserves and accounting of insurance contracts, which are regulated by the current regulations of the National Bank.

These updates are designed to create more favorable conditions for agricultural insurance and support the development of the agricultural sector in Ukraine. The regulator expects that the new requirements will allow to expand the opportunities for farmers regarding product insurance, reduce the risks of losses associated with adverse natural conditions, and strengthen the protection of agrarian business.