As long as it is impossible to forecast natural catastrophes that affect the crops, a protection of farmers as adequate as possible is necessary in Romania. In this context, Florentina ALMAJANU, General Manager, UNSAR - National Association of Insurance and Reinsurance Companies in Romania and Member of the Executive Committee - Insurance Europe, presented a few European experiences in the agricultural catastrophic risks insurance, within the workshop dedicated to the agricultural insurance held at FIAR 2014.

What is happening in other European countries:

Germany

In Germany there is no compulsory insurance against natural risks in agriculture. However, the percentage of insurance policies in case of hail is high.

Cyprus

The catastrophic risks are not insured either. Farming crops losses (only production, not infrastructure or trees/plants) following natural risks (eg. hail, frost, flooding, etc.) are not covered by the National Organization for Agricultural Insurance (a semi-governmental organization). Due to serious budget tightening, the Ministry of Agriculture does not intend to implement a measure plan in line with the EU Regulations.

England

There is no standard coverage. The risks covered vary from one insurer to another. The trend is not to cover the damage for the open-air crops, caused by agricultural land flooding.

Hungary

In 2012 a new system was introduced for diminishing the agricultural damage. This "agricultural premium" system improves the self-protection of farmers to a great extent. The premium subvention is related to the EU financing. The insurance role is growing every year as the climate is causing more and more damage in Hungary.

Source - http://insurance.1asig.ro/