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 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.

Bibliographic Details

Main Author:	World Bank
Language:	English en_US
Published:	Washington, DC 2012-06
Subjects:	ACTUAL YIELDS, AGENTS, AGRIBUSINESS, AGRICULTURAL ACTIVITIES, AGRICULTURAL CROP PRODUCTION, AGRICULTURAL INSURANCE, AGRICULTURAL INSURANCE SCHEME, AGRICULTURAL INSURANCE SCHEMES, AGRICULTURAL INSURANCE SYSTEM, AGRICULTURAL PRODUCERS, AGRICULTURAL PRODUCTS, AGRICULTURAL RISK, AGRICULTURE, AGRICULTURE SECTOR, ALLOCATION, ANNUAL CROPS, AQUACULTURE, AVERAGE ANNUAL RAINFALL, AVERAGE YIELDS, BASIS RISK, CAPITAL REQUIREMENTS, CAPS, CATASTROPHE REINSURANCE, CATASTROPHE RISK FINANCING, CEREALS, CLIMATE, CLIMATIC CONDITIONS, COINSURANCE, COMMERCIAL FARMERS, COMMERCIAL INSURANCE, COMMODITY, COMPENSATION, COMPULSORY INSURANCE, COOPERATIVES, COST OF REINSURANCE, COTTON, COVERAGE, CROP, CROP AREA, CROP DAMAGE, CROP FAILURE, CROP HUSBANDRY, CROP INSURANCE, CROP INSURANCE PREMIUM, CROP INSURANCE PRODUCT, CROP INSURANCE PROGRAM, CROP INSURANCE SCHEME, CROP LOSS, CROP LOSSES, CROP OUTPUT, CROP PRODUCTION, CROP PRODUCTION SYSTEMS, CROP RISK, CROP SEASON, CROP YIELD, CROP YIELDS, CROPS, DISASTERS, ECONOMIC GROWTH, ECONOMIC THEORY, EXCESS OF LOSS REINSURANCE, EXCHANGE RATE, EXTREME DROUGHT, FAMILY FARMS, FARM, FARMER, FARMER ASSOCIATIONS, FARMS, FEASIBILITY, FIELD CROPS, FINANCIAL CHALLENGES, FINANCIAL CONTRIBUTIONS, FINANCIAL DATA, FINANCIAL INSTITUTIONS, FINANCIAL LOSS, FINANCIAL PERFORMANCE, FINANCIAL SUPPORT, FISHERIES, FOOD CROPS, FOOD SECURITY, FRUIT CROPS, GRAIN, GRAIN CROPS, GRAIN FARMING, GRAINS, GRAZING, GROUP INSURANCE, GROWING SEASON, HORTICULTURAL CROPS, HUSBANDRY, INCOME, INDEMNITY, INNOVATION, INSPECTIONS, INSURANCE ASSOCIATIONS, INSURANCE CLAIMS, INSURANCE COMPANY, INSURANCE CONTRACT, INSURANCE COVER, INSURANCE INDUSTRY, INSURANCE MARKET, INSURANCE POLICIES, INSURANCE POLICY, INSURANCE POOLS, INSURANCE PREMIUM RATES, INSURANCE PREMIUMS, INSURANCE PRODUCT, INSURANCE PRODUCTS, INSURANCE REGULATOR, INSURANCE RESERVES, INSURANCE SECTOR, INSURANCE SYSTEM, INSURERS, INTERNATIONAL REINSURANCE, LABOR FORCE, LAYERING, LEVEL PLAYING FIELD, LIFE INSURANCE COMPANIES, LIVESTOCK GRAZING, LIVESTOCK INSURANCE, LOSS RATIO, MARGINAL FARMERS, MEAT, MORAL HAZARD, MUTUAL INSURANCE COMPANIES, NON-LIFE INSURANCE, NONPROPORTIONAL REINSURANCE, OILSEED CROPS, OILSEEDS, POLICY MAKERS, POLICYHOLDERS, POOR FARMERS, PORTFOLIO, PRELIMINARY ESTIMATES, PRIVATE INSURANCE, PRIVATE INSURANCE COMPANIES, PRODUCTION COSTS, PRODUCTION SYSTEMS, PROGRAMS, PROPORTIONAL REINSURANCE, REGULATORY FRAMEWORK, REINSURANCE, REINSURANCE AGREEMENT, REINSURANCE MARKETS, REINSURERS, RISK ASSESSMENT, RISK MANAGEMENT, RISK TRANSFER, SALVAGE, SAVINGS, SCENARIOS, SEED, SINGLE CROP, SMALL FARMER, SMALL FARMERS, SOILS, SOLVENCY, SOLVENCY REQUIREMENTS, SOWING, SPRING, SPRING WHEAT, TOTAL COST, TRANSACTION COSTS, UNCERTAINTIES, UNDERWRITING, UNDERWRITING STANDARDS, VEGETATION, YIELD LOSS, YIELDS,
Online Access:	http://documents.worldbank.org/curated/en/2012/06/20346245/kazakhstan-agricultural-insurance-feasibility-study-vol-1-2-main-report https://hdl.handle.net/10986/20779
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