Agricultural insurance pilot program to continue in Armenia
The Government of Armenia is prepared to continue the agricultural insurance pilot program in 2026, which was first launched in 2020. The program aims to protect farmers from natural disasters, hail, and other risks through an insurance system.
In 2026, insurance premiums will be fully subsidized by government funds. The subsidy will amount to 40% for apricots and 60% for other crops. This will enable farmers to reduce financial risks and promote the utility of insurance.
In 2023, 13 types of crops were insured against 4 risks (spring frost, drought, hail, and fire). A total area of 11,662 hectares was included in the insurance system. Insurance premiums totaled 1.8 billion AMD, while the compensation provided amounted to 2.7 billion AMD.
In 2024, the international reinsurance company withdrew from the Armenian market, and the government assumed the insurance risks through its own funds, while also implementing premium subsidies. In 2025, subsidization reached 70–80%, up from the previous 50–60%. The same 13 crops were insured, including apricots and grapes, which were not included the previous year. As a result of insurance events, approximately 800 thousand AMD in compensation was provided, with a loss ratio of 42%.
In the 2026 agricultural year, the program will continue on a pilot basis, as comprehensive reforms are not yet possible. The project proposes to maintain the pilot system, implement certain changes, and support insurance companies by compensating costs that exceed 80% of the collected insurance premiums, including damage assessment expenses. Insurance companies may apply for compensation after summarizing the monthly results.