Kazakhstan : Agricultural Insurance Feasibility Study, Volume 1. Main Report
Agriculture is a very important socioeconomic sector in Kazakhstan. The Government of the Republic of Kazakhstan (GRK) introduced a national compulsory crop insurance scheme in 2005 in order to provide grain producers and other farmers with a minim...
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| Language: | English en_US |
| Published: |
Washington, DC
2014
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| Online Access: | http://documents.worldbank.org/curated/en/2012/06/20346245/kazakhstan-agricultural-insurance-feasibility-study-vol-1-2-main-report http://hdl.handle.net/10986/20779 |
| Summary: | Agriculture is a very important
socioeconomic sector in Kazakhstan. The Government of the
Republic of Kazakhstan (GRK) introduced a national
compulsory crop insurance scheme in 2005 in order to provide
grain producers and other farmers with a minimum level of
protection against catastrophic climatic events. The overall
objective of the current study is to assist the GRK in
improving the existing mandatory crop insurance program. The
study aims to identify sustainable market-based alternatives
to the current crop insurance system in Kazakhstan. In this
regard, all of the options for improving the current system
that were developed under this study are market based and
take into account global experience and the best insurance
and reinsurance industry practices for agricultural
insurance. The study follows the principles established in
the agriculture risk management framework developed by the
World Bank. The study focuses mainly on spring wheat crop
production in the principal growing regions of Kazakhstan.
The study is set out in six chapters. Chapter one gives
introduction and objectives of the study. Chapter two
presents an overview of agricultural production systems and
markets in Kazakhstan, followed by an assessment of the
climatic hazards and other risks affecting spring wheat in
the country s main crop areas. Chapter three reviews the
structure and performance of the current mandatory crop
insurance system in Kazakhstan and identifies a series of
institutional, operational, technical, and financial
drawbacks of the current system. Chapter four presents a
phased strategy and a series of options and recommendations
for the GRK to consider for the introduction of market based
solutions that aim to strengthen the current scheme. Chapter
five explores the opportunities for developing new crop
insurance products in Kazakhstan, including prefeasibility
analyses for area-yield index insurance (AYII), weather
index insurance (WII), and named-peril hail insurance for
selected rayons. Finally, chapter six deals with the
challenges of tailoring crop insurance to the needs of
lower-income smaller farmers. |
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