Moldovan insurance companies have suspended the process of concluding agroinsurance contracts with farmers due to the fact that they did not receive full subsidies under last year's contracts, east-fruit.com wrote.

In 2022, the amount owed by the Agency for Interventions and Payments in Agriculture (AIPA) to insurance companies reached approximately MDL 22 million (USD 1.1 million). Considering the unstable situation with filling of the National Fund for the Development of Agriculture and Rural Affairs from the state budget, insurers believe that active insurance of farmers in 2023 would be too big a risk.

When concluding insurance contracts according to the current legislation, a farmer pays 30% of the insurance premium, the rest is reimbursed by AIPA to an insurance company. In recent years, such payments have been made with big delays, in connection with which financial performance of insurance companies is deteriorating and there are difficulties in interacting with the National Commission for the Financial Market. This leads to the fact that some insurance companies are gradually leaving the agroinsurance segment of Moldova, the source says.