Kyiv, Ukraine, December 18, 2007—IFC,
a member of the World Bank Group, will be working with Ukraine’s Ministry
of Agrarian Policy to reform the country’s agricultural insurance industry.
IFC will engage state agencies to help develop a strategic plan, promote
improvements in the regulatory environment, and establish structures for
Limited understanding of risk management
in the farm sector hinders the development of the agri-insurance industry.
This also affects farmers’ ability to access finance and grow their operations.
Other challenges include the technical capacity of insurance companies,
a lack of actuarially sound insurance products, limited access to reinsurance.
Farmers also have low confidence in insurance.
IFC will work with key regulatory, institutional,
and commercial partners to improve the environment for agri-insurance,
develop the capacity of insurance companies, and work directly with farmers
in a pilot implementation program. The project will help build the technical
and management capacity of insurance companies and help farmers implement
new insurance products. The project will also engage in a public education
“The project’s cohesive approach will
help increase awareness about agri-insurance and improve products and delivery,
boosting the volume of insurance contracts,” said Gary Reusche, IFC Project
This effort is part of the IFC Ukraine
Agri-Insurance Development Project, which was launched in mid-2007 with
support from the Canadian International Development Agency.
IFC, a member of the World Bank Group,
fosters sustainable economic growth in developing countries by financing
private sector investment, mobilizing private capital in local and international
financial markets, and providing advisory and risk mitigation services
to businesses and governments. IFC’s vision is that poor people have the
opportunity to escape poverty and improve their lives. In FY07, IFC committed
$8.2 billion and mobilized an additional $3.9 billion through loan participations
and structured finance for 299 investments in 69 developing countries.
IFC also provided advisory services in 97 countries. For more information,
The Canadian International Development
Agency is a governmental agency with a mandate to support sustainable progress
in developing countries to reduce poverty and contribute to a more secure,
equitable, and prosperous world. One of its objectives is to work with
countries in transition to stimulate growth by building self-sustainability
among local people and mobilizing available resources. CIDA supports foreign
aid projects in many countries around the world.