Agro-insurance tariffs will be revised. It will happen as soon asthe government installs anti-hail nets in the region of Kakheti.
At this stage, the Ministry of Agriculture does not specifywhether the price of agro-insurance will hike or drop after tariffs are reviewed.
Agriculture Minister Otar Danelia only says that the newequipment will be installed in the spring that means that the rates are to be revised.
“Commersant” was told at the Ministry that the current datawere being processed, in particular, the results of the insuranceas well as gaps were being analyzed. Further details are not known.
President of the Georgian Insurance Association Devi Khechinashvili suggests that agro- insurance will become cheaper, because the installation of anti-hail nets will decrease the risk of rainfall, for this reason the insurance rate should be reduced.
In his words, after the analysis is completed, it will be possible to say how agro- insurance rates will be adjusted.Khechinashvili estimates, if the anti-hail equipment is commissioned in spring, next year there will be already enough data to develop a new tariff.
Places to install anti-hail equipment have already been selected in Kakheti. Delta Company worked on the choice of locationsalong with the security services.
According to the company, in total 84 locations were selected in the Kakheti region, where the equipment will be installed. Delta”representatives report that they are mostly the places where the same equipment was installed during the Soviet Union.
According to their information, construction of greenhouses has already begin and if the force majeure does not prevent, anti-hail nets will be installed in the late spring.
The government has allocated GEL 22 million for anti-hail equipment. The pilot project was launched on 1 September 2014 .
70% -95% of the cost of agro insurance is covered by the state.
Within the project, all types of agricultural crops are insured hail, excessive rainfall, storm, autumn frost.