The volume of insurance of stone fruit orchards against spring frosts in Moldova has sharply decreased

Published 2023년 3월 31일

Tridge summary

In 2023, Moldovan insurance companies have seen a significant decrease in insurance transactions for cherry, cherry, apricot, and peach orchards against spring frosts, with numbers and amounts being half to two-thirds of the previous year. This decline is attributed to new legislation that has imposed administrative restrictions on subsidized agricultural risk insurance. The law limits policyholders' debts to a small percentage of the insurance fund and authorized capital, potentially leading to financial troubles for insurance companies if these limits are exceeded. The delays in subsidy transfers from the National Fund for Subsidizing Agricultural Producers and Rural Areas have resulted in insurance companies imposing limits on crop insurance policies for the first quarter of 2023. However, there is a draft law under consideration to remove these restrictions, which is expected to be adopted by the Parliament, offering hope for the continuation of insurance campaigns for the season.

Disclaimer:The above summary was generated by Tridge's proprietary AI model for informational purposes.

Original content

Brokers of Moldovan insurance companies claim that in 2023, the number and amount of insurance transactions for cherry, cherry, apricot and peach orchards against spring frosts decreased by one and a half to two times compared to last year's figures. The main reason is the amendments with administrative restrictions that have come into force under the legislation on subsidized agricultural risk insurance since the beginning of this year, EastFruit reports. The essence of the changes is that policyholders' debts on contributions to insurance companies from the beginning of 2023 may be only a very small percentage of the amount of their insurance fund and authorized capital. Exceeding these limits, reflected in the financial statements of insurance companies, can create big problems for them in the process of interaction with the National Commission for the Financial Market - up to the introduction of an external management regime. Meanwhile, debts arise regularly and large, since ...

Source: Eastfruit