Microfinance Focus February 23, 2011:In a bid to help Ukraine establish institutional structures needed to develop its agricultural insurance sector and improve the quality of insurance services offered to farmers, IFC, a member of the World Bank Group is lending its support to it.

The quality of services to be provided will be underpinned by standard insurance products developed and launched into the market by the IFC Ukraine Agri-Insurance Development Project in collaboration with the key stakeholders: farmers, government and insurance companies.

Supported by the IFC project team, the Bureau will help its members in establishing a common data management system, develop new products, negotiate re-insurance terms, ensure transparent loss adjusting, and conduct education campaigns for farmers. The members will enforce ethical behavior in the market to establish a culture of trust. It is the founders’ ambition that Bureau membership will become a guarantee of quality insurance based on the best international standards.

IFC’s Project Manager Dr Gary Reusche said, “The Bureau effectively represents the leading insurers in Ukraine, and is in line with best international practices.”
He added, “An agricultural insurance system requires a public-private partnership and transparent operations to function. The pooling of resources makes it financially viable and close collaboration with farmers and the government makes it work. Your initiative to start this Bureau is a major step towards establishing an efficient and sustainable agri-insurance system in Ukraine.”

With the creation of the Bureau, Ukraine’s agri-insurance sector will develop quality products for the market and establish trust with producers. A modern corporate governance structure will be established, based on open and transparent procedures, so that the Bureau will support the interests of both insurers and farmers. The government, in turn, will have additional assurance that the funds allocated to subsidize insurance premiums will be spent appropriately and provide real protection for Ukrainian farmers.