ArmInfo. 1.1 billion drams will be allocated to fulfill insurance payment obligations for the 2026 agricultural year. The RA Government approved the allocation of 453.05 million drams of this amount at its November 5 meeting.
As noted in the rationale for the draft decision, apricot, grape, apple, peach, plum, melon, watermelon, potato, cherry, wheat, barley, and oat crops in the agricultural sector have been insured for 2026 against the risks of hail, fire, spring frost, and drought. In 2026, insurance companies sold 9,528 insurance policies, with gross premiums amounting to approximately 798.8 million drams, and the total area of insured orchards and crops amounting to approximately 10,928 hectares. These figures demonstrate the continuous expansion of the coverage and application of the insurance system in the agricultural sector.
As part of the program for implementing the insurance system in the agricultural sector, state support is provided to economic operators engaged in agriculture through partial subsidies for insurance premiums, and a corresponding mechanism is also provided for reimbursing a portion of the compensation paid by insurance companies in excess of the established threshold.
As of 2026, each insurance company will also receive compensation for the portion of insurance indemnities that exceeds 80 percent of the collected (accrued) insurance premium. According to information provided by the National Agency of Agricultural Insurers, as of August 31, 2026, the total projected insurance compensation for 2026 is approximately 1.7 billion drams. Specifically, approximately 1.1 billion drams of insurance compensation is planned for cherries, sweet cherries, apricots, and plums in the first stage, and approximately 652 million drams of compensation for other crops in the second stage.
According to the presented calculations, given a total damage of 1.7 billion drams, the required amount of state support will be approximately 1.1 billion drams. Of the approximately 1.1 billion drams of compensation planned for the first stage, approximately 640 million drams should be financed by insurance companies, and state subsidies are required to cover 453.05 million drams in compensation.
