On July 1, the agricultural insurance service will officially be piloted in 21 provinces/cities, the Dau Tu Chung Khoan newspaper reported.
Accordingly, the service includes insurance for paddy plant in Nam Dinh, Thai Binh, Nghe An, Ha Tinh, Binh Thuan, An Giang, Dong Thap; insurance for livestock and poultry in Bac Ninh, Nghe An, Dong Nai, Vinh Phuc, Hai Phong, Thanh Hoa, Binh Dinh, Binh Duong, Hanoi; insurance for fisheries in Ben Tre, Soc Trang, Bac Lieu and Ca Mau.
Farmers expected that agricultural insurance would partially help them reduce risks from disaster, and epidemic. However, for insurers, finishing the plan is not easy. The kind of insurance factually was launched ten years ago by Bao Viet Insurance and France’s Groupama, but they couldn’t maintain the service due to small fees while compensation was high.
Representative of a non-life insurer shared, despite a lot of hidden risks, many firms want to conquer the agricultural insurance market because Vietnam is an agricultural country, majority of land and human resources operate in the basic sector. This is also a highly potential market without competition while in other insurance services, insurers are facing fiercer competition. Some agriculture insurance providers have not satisfied demand of farmers in both scope and business efficiency.
Bao Minh, one of enterprises selected to carry out the pilot plan of agricultural insurance said that the firm always pioneers in building new insurance products, and minimizing limitations of traditional insurance. In fact, the firm started to pilot drought insurance for coffee tree in 56 communes of four districts and Buon Ma Thuot City in Dak Lak province in 2011, through which, Bao Minh signed 22 contracts with total insurance amount of more than 400 million dong and fees of 40 million dong.