Kiev, Ukraine, February 22, 2011—IFC,
a member of the World Bank Group, is helping Ukraine establish institutional
structures needed to develop its agricultural insurance sector and improve
the quality of insurance services offered to farmers.
In February, 15 market leaders established
the Ukraine Agri-Insurance Bureau--a pool of insurance companies that join
their resources to provide quality insurance services to farmers and improve
their access to finance.
The quality of services to be provided
is 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 to establish 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.
“The Bureau effectively represents
the leading insurers in Ukraine, and is in line with best international
practices,” said IFC Project Manager Dr. Gary Reusche. “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.
IFC, a member of the World Bank Group,
is the largest global development institution focused on the private sector
in developing countries. We create opportunity for people to escape poverty
and improve their lives. We do so by providing financing to help businesses
employ more people and supply essential services, by mobilizing capital
from others, and by delivering advisory services to ensure sustainable
development. In a time of global economic uncertainty, our new investments
climbed to a record $18 billion in fiscal 2010. For more information, visit