Azerbaijani insurance company offers to switch to index-based agricultural insurance model
By Trend
The Azerbaijani Ateshgah Insurance company has offered to switch to the index-based agricultural insurance model, deputy director of the Ganja branch of the insurance company Orkhan Gurbanov said, Trend reports referring to the company.
Gurbanov made the remarks at the scientific-practical conference "Application of agricultural insurance in Azerbaijan: problems and opportunities" in Baku on April 4.
He stressed that nontraditional index-based insurance becomes more popular in the world practice of agrarian insurance.
“Payments on the index-based insurance model are made on the damages caused to the sown areas only in case of exceeding a certain limiting parameter,” Gurbanov added.
"An indicator of this parameter may be the precipitation during a certain period or the temperature limit,” he said. “As opposed to the traditional agricultural insurance model, administrative costs for index insurance are relatively lower. Applying such a model would be more appropriate. We can use the knowledge of other developing countries that apply the programs of individual or about 20 different types of index-based insurance."
Turkey applies the TARSIM agricultural insurance model, through which the state renders support to all farmers and farms in the form of a certain amount of insurance payments and farmers pay for additional coverage themselves.