Fanel PLOPEANU, General Manager, FATA Asigurari
Insurance companies who are present in the agricultural insurance segment perceived 2006-2007 as a warning to take action on an economical and technical level. It seems that global warming is making its presence felt in our country. We are facing unusual weather phenomenon for Romania which are more frequent and more aggressive.
XPRIMM: How did agricultural insurers react to the year 2007? What
is the estimated claims ratio for this segment between 2006 and 2007?
Fanel PLOPEANU: Insurance companies who are present in the agricultural
insurance segment perceived 2006-2007 as a warning to take action on
an economical and technical level. It seems that global warming is making
its presence felt in our country. We are facing unusual weather phenomenon
for Romania which are more frequent and more aggressive. Having this
in mind, the claims ratio (crops and livestock) for 2007 climbed to 100-200%.
That is why insurers have to take measures to cover the costs of these
XPRIMM: What is your opinion on the proposition from the Minister
of Agriculture regarding the cover for draught and floods through insurance?
F.P.: We believe that this measure is premature for Romania. Considering
that the notion of insurance in our country is relatively new in comparison
to other countries, companies do not have the reserves and the financial
strength to cover catastrophic risks.
XPRIMM: Which are the modifications you think are required on a legal
level so agricultural insurance to be stimulated?
F.P.: First of all, the 50% subvention for insurance premiums should
be reintroduced, together with widening the list of crops and animals
that will benefit from this. Private producers don't have the possibility
to cover the insurance at their own expense like the ones from more developed
On the other hand, insurers must reanalyze how premiums will grow according
to the specific risks, the use of the "malus" system and introducing
new types of insurance to cover all their needs.
The Committee for Agriculture of UNSAR, with the participation of MAPDR
can start debates to establish a plan for this situation.
If the appropriate measures are not taken, this type of insurance will
disappear because will prove not to be profitable and investors will
drop agricultural insurance.
XPRIMM: What do you think about the potential of this segment?
F.P.: The potential as an area is large, 70-80% of the crops and
livestock. Presently, only 15-20% of the surface is covered but as far
as and some animal farms are concerned insurance is insignificant and
Editor: Mihaela CIRCU
| Published on 14.08.2008