Table 3 Models of private-public partnership in agricultural risk insurance
with the support of the state
The model
Characteristics of the model
The most
effective
private-
public
partnership
USA. The administration is carried out by the Federal Crop Insurance
Corporation, which establishes the rates of insurance premiums, the
size of subsidies, approves insurance products. The level of subsidy -
50% of the insurance premium under insurance coverage of 70%.
Insurers are privately owned licensed insurance companies. Subsidies
are provided to insurance companies. More than 150 types of insurance
products with multi-risk and index insurance. Insurance covers 85
species of agricultural crops. Coverage of agricultural insurance –
60%.
High
influence of
the state
Canada. Voluntary insurance is provided by state companies that
develop their own insurance programs (based on the recommendations
of the Ministry of Agriculture and Agri-Food), taking into account the
specifics of production and budgetary capabilities of the federal unit.
The average subsidy level is 60% of the insurance premium. Subsidies
are granted to insurance companies in proportion to the federal and
provincial budget. Coverage of agricultural insurance – 60%.
Israel. Insurance and reinsurance of risks is provided by the Insurance
Fund for Natural Risks in Agriculture of KANAT. The average level
of subsidy is 35% of insurance premiums for all types of insurance
(crops and animals). Coverage of 100% obligatory insurance of
agricultural production.
Insurance
through an
insurance
pool
Spain. The state company Agroseguro (Insurance pool) brings
together 27 private insurance companies, administers insurance
contracts, calculates premium rates, assesses losses and reimburses.
The insurance of crops and animals are subsidized. The level of
subsidies – 53% of the insurance premium (40-45% is allocated from
the state, 10-15% - from the regional budget). All risks are reinsured
through a state-owned reinsurance company. Coverage of agricultural
insurance – 90% of crops, 70% of animals.
Turkey. Agricultural Insurance Pool (AIP), headed by the management
company TARSIM (represented by the Ministry of Agriculture,
Treasury, participating insurance companies). Insurance premiums and
subsidies are paid to TARSIM. The level of subsidy – 50-66% of the
insurance premium. Objects of insurance are agricultural crops, cattle,
poultry, aquaculture, greenhouses. 36 cultures are subject to insurance
with state support.
The
existence of
a single
insurer in
the market
Austria. Subsidized voluntary insurance is provided by an insurance
company Die Osterreichische Hagelversicherung, a non-profit
organization. Multi-risk insurance of agricultural crops and animals.
The level of subsidy is 50% of the insurance premium (25% from
federal and local budgets each). In the absence of insurance payments,
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