OREANDA-NEWS. September 25, 2012. According to preliminary data, the agro-industrial insurance service charges of Ingosstrakh Insurance Company for 6 months of 2012 amounted to RUB 428 m, which is 3 % more comparing with the same period of 2011. Crop insurance charges exceeded RUB 196 m, agricultural producers’ property insurance charges exceeded RUB 161.8 m (increase by 1 %), animals, fish and poultry insurance charges exceeded RUB 70 m (increase by 25.2 %).

The agriculture insurance compensation of Ingosstrakh Insurance Company for the first half of 2012 amounted to RUB 288 m. The largest compensations were traditionally paid due to harvest failure. Ingosstrakh Insurance Company paid RUB 164 m to Siberian Agrarian Holding (SAHO) Group of Companies LLC due to harvest failure on the fields of Tula and Ulyanovsk Regions; approximately RUB 6 m were paid to Erdem Agriculture Production Cooperative in the Republic of Buryatia due to harvest failure; RUB 3.4 m were paid to a farming enterprise in Chernoyarsky District of Astrakhan Region due to rice harvest failure; approximately RUB 1.7 m were paid to Druzhba LLC located in Putyatinsky District of Ryazan Region due to fire.

Traditionally, Ingosstrakh Insurance Company has taken part in major seminars, exhibitions and conferences of agricultural sector. In February, Ingosstrakh Insurance Company participated in the Agrarian Forum of Russia – the 3rd annual project of Vedomosti business newspaper held in Rostov-on-Don. In association with AgroInvestor specialized edition, Ingosstrakh Insurance Company organized "Agro-Industrial Complexes of Black Earth Region – Strategies of Development" agrarian business-forum of Central Black Earth Region which took place in Voronezh on March 15, 2012. Ingosstrakh Insurance Company also acted as the general sponsor of the 9th Summer Federal Business Conference "Agricultural Holdings of Russia" held in Moscow, which was devoted to the first results of agricultural year 2011–2012 and perspectives of agricultural sector development. Apart from that, Ingosstrakh Insurance Company participated in the round table discussions "Agricultural Insurance 2012: the New Law and New Objectives" which took place on April 5, 2012 in Moscow. In May, the Kazan branch office of Ingosstrakh Insurance Company participated in the seminar of Volga Region agricultural producers "The New System of Agricultural Insurance with State Support. Mechanisms and Rules for Agricultural Insurance in 2012" arranged by the National Association of Agricultural Insurers in association with the Ministry of Agriculture of the Russian Federation. In June, Ingosstrakh Insurance Company was a member of the 12th International Agro-Industrial Exhibition "Zolotaya Niva 2012" which took place in Krasnodar Territory.

In general, the first half of 2012 witnessed significant recession in agricultural insurance, the amount of insurance charges decreased almost by one third. The decrease was observed in all regions, even in those where agricultural insurance has traditionally strong positions. The main factor inhibiting the insurance market development was updated legislation. The regulatory documents for insurers operation were not ready by the start of agricultural season. As a result, insurance companies were not able to conclude contracts with agrarians.

"Even now we can say that the law requires revision. We insist on introduction of imputed insurance, i.e. the insurance policy is considered to be an admission ticket for all the types of state support," says Delyara Sangadzhieva, Head of Administration of Agricultural Insurance of Ingosstrakh Insurance Company. "If the state wants to be engaged in catastrophic risks, then a list of insured evens to be brought into conformity to the criteria needs a revision as well. It is evident that the cost of insurance shall equal to the insurer's liability (cost of risks). Besides, the state should agree that the market needs just one professional association securing the rights and obligations of agrarian risks insurers. Ingosstrakh Insurance Company says that unified insurance methodology and settlement of losses in agricultural insurance is needed. The unified professional association shall ensure the unified methodology of the insurers and control over its high-quality implementation."