Agriculture is the second important sector of economy in Azerbaijan. Therefore, insurance in this sector needs to be at a high level. Firdovsi Agashirinov, head of the Insurance Supervision Department of the Financial Market Supervisory Authority of Azerbaijan (FIMSA), has told that new agricultural insurance mechanism will be launched in Azerbaijan till the end of 2020. Agashirinov stated that models of Turkey's and Spain's agricultural insurance mechanisms are chosen as examples for the development of the draft law on agricultural insurance. 'The task of creation of an agricultural insurance mechanism has been set before both FIMSA and the Ministry of Agriculture and a working group has been created to review the international practice,he said. The head of department added that the attention was also paid to the negative moments in these mechanisms and in order to act flawlessly in the future, they will take into account the mistakes. Agashirinov noted that taking into consideration peculiarities of Azerbaijan, the draft law on agricultural insurance has been prepared based on these models and after the law enters into force, agricultural insurance will work on the basis of mechanism of cooperation between the state and the private sector, thus it will be implemented through joint insurance system, which will be managed via an e-information system. Then, Agashirinov emphasized that each direction of the agricultural sector, such as animal husbandry or crop production, will be regulated according to its rules. Moreover, he said that to attract independent experts, FIMSA is negotiating with the Azerbaijan State Agrarian University and there is ongoing work to establish independent expert institute for agricultural insurance. "The law also envisages the subsidization of insurance premiums, one part of which be paid by the farmer and the other by the state," he added. "This also implies guarantees for reinsurance on the accumulated funds." Agashirinov stressed that the state guarantees which will be a step higher than reinsurance. 'This is a new mechanism. Thus, the problem of ensuring the protection of farmers from risks will be solved. At the same time, the burden of the state will decrease and the sustainability of agricultural production will be ensured, he said. At the end, noting that there will be conditions for the growth of financial opportunities, Agashirinov said that he level of urbanization will decrease, and food security will be improved. 'All these advantages will be possible after implementation of the new agricultural insurance system," he pointed out. Source -  https://menafn.com/