Crops and harvests are insured only by 15% of agrarians, and agricultural machinery insures a third of them. This is evidenced by the results of a survey of agricultural enterprises, made by the Ukrainian Agribusiness Club.
Due to these polls, it became clear that the majority of agricultural producers do not turn to insurance services for their own crops and harvests.
At the same time, we recall that in 2017, for the first time since 2011, the number of insurance contracts concluded in the agricultural sector has increased. The gain was 21%. At the same time, the volume of collected insurance premiums in UAH has been growing for the third consecutive year. In particular, last year it increased by 30% and amounted to UAH 204 million.
So, the survey showed that 85% of agricultural enterprises neglect this kind of services. And only 15% of farmers support insurance. Of these, 73% reported payment of a share of compensation. Respondents noted that they cover 20-60% of losses (depending on the type of insurance).
33% of agricultural producers insure their field “horses”. Of these, 49% provided information on the percentage of insured machinery. Of this number, fully insured agricultural machines are by 29% of agrarians, eleven percent ensure most of the existing fleet of equipment (65-80%), 11% of respondents said they insure 50% of the equipment that is in stock. The remaining 49% of respondents partly use services at the agricultural enterprise – from 40 to 2%.
The survey helped to find out that agricultural producers protect only newly acquired equipment because it helps to minimize the risks of malfunction or theft. Now such services are just starting to find supporters. In the future, they are predicted a great demand and a rapid growth for the market.