According to preliminary data from employees of Moldovan insurance companies, the total amount of contributions under agricultural risk insurance contracts in 2022 exceeded 80 million MDL (more than $4 million). About 20-25% of all collected insurance premiums were in the horticulture sector – about 3 000-4 000 ha of perennial plantations were insured, EastFruit reports.
At first glance, this is not much for a sector producing high-value-added products (which, by the way, takes more than 100 000 ha). According to insurance brokers, the number of insurance contracts in horticulture and the sums in them “exceeded last year’s figures by 40-50%.”
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An important incentive to increase insurance coverage in Moldovan horticulture was the fear of fruit producers of the high probability of spring frosts and summer drought in 2022. Both risks came true. There were 9 days with an atmospheric temperature of – 5-7 C and even lower in some areas in April. The extreme drought was obvious to everyone. Insurers took a risk to offer comprehensive packages that included drought damage to regular agricultural clients and miscalculated badly.
Indemnity payments for insured events to individual large farms amounted to tens of millions of MDL – hundreds of thousands of dollars.
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