LIOU participated in the IFC seminar

On January 23, 2018, the Project “Development of Financing Agrarian Sector in Europe and Central Asia”, carried out by the International Finance Corporation (IFC, World Bank Group), held a seminar: “Strategies for successful marketing and distribution in insurance. Best approaches and tools in advancing insurance programs”.

Vice-President of the League of Insurance Organizations of Ukraine Romana Novalkivska congratulated the participants of the event  and wished for fruitful work. Speaking to the participants, she noted that we repeatedly heard the indicators of the agrarian sector, which the country can be proud of: the share in GDP of Ukraine – 11.6%, and in the total volume of exports – 42.5%. With such indicators, market opportunities for agrarian insurance are significant. However, according to data from the National Financial Services Commission, agricultural insurance is only 0.03% of all voluntary insurance contracts concluded by insurers, and about 1% of the total collected premiums.

The Vice-President of LIOU stressed that, according to IFC data, in 2017, the trend of growth of the agri-insurance market and improvement of its qualitative characteristics continued in the underwriting year of 2017. However, the amount of insured area is almost unchanged from 2014. R.Navalkivska noted that the main factors inhibiting the development of agroinsurance are the lack of trust of agricultural producers to insurers, low awareness and insufficient financial capacity. Therefore, in order to reveal the potential of this type of insurance, it is necessary to: implement an effective model of agroinsurance regardless of the political and economic situation in the country; introduction of regular state funding of subsidized agroinsurance programs in Ukraine by adopting the Law; the involvement of all possible forms of promotion the importance of the agroinsurance development, its popularization among agricultural producers.

“Only through the close cooperation of all interested parties: the state, insurers, farmers and experts, the understanding of all these parties of the need and benefits of agroinsurance, we can influence the situation and encourage farmers to consciously and voluntarily use such a tool to manage their own the risks of agroinsurance, and not just as a requirement for a loan or forwards, which, like in previous years, occupy a lion’s share of the amount of collected premiums, “- says R.Navalkivska.

The program of the event also addressed the issues of modernization of the insurance product; increase in the value of a product for crops insurance: an increase oriented to the offer value; increase sales locally; distribution and service strategies; partnership development, etc.

The main goal of the seminar is to familiarize the insurance companies with the best marketing strategies and strategies for selling and distributing insurance products. During the seminar, insurance companies were presented with key tools and solutions that will help keep potential and attract new customers using updated insurance products.

Participants of the event are insurance companies and profile associations, reinsurers and brokers, banks and suppliers of product-material resources for the agricultural sector.