The Vietnam Bank for Agriculture andRural Development (Agribank) has said it is planning to submit anagriculture insurance project to the government, under which allcompensation will be paid by Swiss Reinsurance.
DoMinh Hoang, Acting General Director of the Agribank Insurance JointStock Company (ABIC) which created the project, said total lossescaused by natural disasters and epidemics in the agricultural sectoraccount for 1.5 percent of the country’s GDP each year. With such ahigh risk, many domestic insurers, including ABIC, can not pay thedamages, he added.
For this reason, Agribank proposed the transfer of agricultureinsurance abroad through its partner Swiss Reinsurance – whose capitalis 30 times higher than that of Agribank, with an operation networkthat extends to 160 countries and territories around the world.“Therefore, natural disasters and epidemics on whatever scale are allwithin the possibility of insurance,” Hoang stressed.
Under the project, ABIC will offer agricultural insurance products tofarmers and then resell the original insurance policies to SwissReinsurance.
The Swiss group sent experts to assist ABIC in designing agricultureinsurance products. One of the planned products is drought indexagriculture insurance.
According to Agribank , Vietnam currently has 13 million farmhouseholds. Of that number, 10 million are the bank’s potentialclients, 2 million are living just above the poverty line and arepotential customers of the Social Policy Bank and the rest are alreadycustomers of 100 or so other finance institutions and banks.
Over the past two decades, 1.8-1.9 percent of farm households have taken out loans but have failed to pay their debts./.
DoMinh Hoang, Acting General Director of the Agribank Insurance JointStock Company (ABIC) which created the project, said total lossescaused by natural disasters and epidemics in the agricultural sectoraccount for 1.5 percent of the country’s GDP each year. With such ahigh risk, many domestic insurers, including ABIC, can not pay thedamages, he added.
For this reason, Agribank proposed the transfer of agricultureinsurance abroad through its partner Swiss Reinsurance – whose capitalis 30 times higher than that of Agribank, with an operation networkthat extends to 160 countries and territories around the world.“Therefore, natural disasters and epidemics on whatever scale are allwithin the possibility of insurance,” Hoang stressed.
Under the project, ABIC will offer agricultural insurance products tofarmers and then resell the original insurance policies to SwissReinsurance.
The Swiss group sent experts to assist ABIC in designing agricultureinsurance products. One of the planned products is drought indexagriculture insurance.
According to Agribank , Vietnam currently has 13 million farmhouseholds. Of that number, 10 million are the bank’s potentialclients, 2 million are living just above the poverty line and arepotential customers of the Social Policy Bank and the rest are alreadycustomers of 100 or so other finance institutions and banks.
Over the past two decades, 1.8-1.9 percent of farm households have taken out loans but have failed to pay their debts./.
