The Armenian Ministry of Economy, which oversees the country's agriculture sector, is proposing to fully subsidize insurance premiums from the state treasury as part of its agricultural insurance program for 2026, as well as provide agricultural entrepreneurs with a subsidy of up to 40-60% (inclusive) of insurance premiums stipulated by insurance contracts, ArmInfo writes.

At the same time, the ministry is confident that the agricultural insurance system requires fundamental reform. The new, reformed program is planned for launch in 2027. The initiative was approved by the Armenian government on January 22, 2026.

The program was launched initially in 2020. Until 2023, the program's results improved year after year. In 2023, GWP amounted to AMD 1.8 billion (~EUR 4.30 million), while paid claims reached AMD 2.7 billion (~EUR 6.46 million). In 2024, due to high losses recorded in 2023, the reinsurance company withdrew from the Armenian market. To mitigate the risks of insurance companies, the Armenian Government assumed this role, also subsidizing insurance premiums at its own expense. According to the National Agricultural Insurers Agency (AINA), GWP for the 2024 agricultural year amounted to approximately AMD 21.9 million (~EUR 0.05 million).

In 2025, a subsidy of up to 70-80% of insurance premiums was introduced, replacing the previous 50-60%. According to AINA, in 2025, GWP amounted to approximately AMD 1.9 million, with the subsidized insurance premium amounting to approximately AMD 1.3 million. As a result of insured events, insurance companies paid out AMD 788,840. The loss ratio was 42%. The Ministry of Economy is convinced that similar problems will persist in the 2026 agricultural year. According to the World Bank, the current agricultural insurance system requires fundamental reform, which is unrealistic to implement by 2026. It is proposed to continue the pilot program in 2026, introducing some of the changes outlined in the draft. Thus, systemic changes will be implemented throughout 2026, and a new, reformed program will be launched in 2027, the source added.

Source - https://www.xprimm.com