OREANDA-NEWS. September 16, 2011. In the seven months of 2011, the company’s total crop insurance premium collected in Povolzh’e regions exceeded 101.8 mln. roubles, which is 61% higher than in the same period of the previous year, reported the press-centre of ROSNO.

Among 13 Povolzh’e regions where ROSNO’s Privolzhskaya Directorate is represented, in the seven months of 2011, the largest insurance premium amounts were collected in the Kirov, Orenburg and Nizhny Novgorod Regions — 27.2 mln. roubles, 23.8 mln. roubles, and 23.5 mln. roubles respectively. In the running year, agricultural producers operating in these areas demonstrate the highest activity in protecting themselves against business risks.

Povolzh’e is one of the largest agricultural areas in Russia. It comprises over 48 mln ha of agricultural lands, including about 30 mln. ha of arable land. The leading plant cultivation industry is grain farming. Many Povolzh’e regions have been traditionally regarded as risky farming area, and agrarians’ risks are growing by the year due to the global climate change, and agrarians themselves are willing to share those risks with insurers.

As a rule, ROSNO clients in Povolzh’e agricultural sector are large holdings and agricultural enterprises using sophisticated production technologies, and farms with strong management. Usually, agrarians insure crops against such risks as shortage, partial loss or destruction due to natural phenomena threatening agricultural products, such as freeze, drought, snowmelt flood, hail, etc., as well as fire, blight and unlawful third-party actions. ROSNO’s insurance protection covers such crops popular in the region as wheat, rye, rape, cereals, barley, maize, pea, potato, sugar beet, and many other types. As a rule, contracts are concluded for one year. However, lately an increasing number of producers prefer to build long-term cooperation with insurers under longstanding insurance protection programs. Such approach minimizes losses in agricultural business and ensures additional financial stability for agricultural enterprises.

"Agricultural risk management is one of the most important vectors of successful development of this industry, a guarantee that agricultural enterprises will be effective in their business. And, as is widely known, insurance is the major risk management tool", stresses Mr. Alexander Yemelin, head of the Privolzhskaya Directorate of OJSC IC ROSNO. — The need for insurance became evident to the majority of agricultural producers after the last year’s huge losses sustained due to drought. In 2011, we are observing a considerable growth in demand for crop insurance — both in our company, and in the insurance market in general."