1. Agricultural Insurance Statistics – International Experience Introduction of New Programs and Informational Support www.agroinsurance.comwww.agroinsurance.com – Agricultural Insurance and Risk Management Portal www.agroinsurance.com Roman Shynkarenko, Project Manager www.agroinsurance.comwww.agroinsurance.com February 6, 2007

2. The purpose of collecting statistical information Comparison of quantitative program results within the years Identification of tendencies Assessment of products demand Understanding the problem aspects Modification and improvement of the insurance products More accurate assessment of the necessary government funds for subsidization of agricultural insurance programs www.agroinsurance.comwww.agroinsurance.com – Agricultural Insurance and Risk Management Portal www.agroinsurance.com

3. Development of agricultural insurance market in Italy 20002001200220032004 Number of policies251,584218,067221,872211,54211,408 Insured crops (value)93,412,000133,436,000142,829,000139,938,000165,018,000 Insured area1,037,0001,005,000933,000950,000989,000 Insurance sum 000's3,500,3833,232,1283,216,8033,333,9013,604,258 Premiums collected 000's258,539244,728269,617277,039269,483 Average premium rates% 7.39 7.57 8.38 8.31 7.48 Loss 000's 213,374 211,267 173,684 116,633 169,570 Loss ratio%82.586.364.442.162.9 Example of statistical data in Italy (new dynamically-developing market in Europe) www.agroinsurance.comwww.agroinsurance.com – Agricultural Insurance and Risk Management Portal www.agroinsurance.com

4. Volumes, premiums and loss by crops in 2004 Share Premiums Average premium rate Loss shareLoss ratio %%% Grain crops27.5143.827.332.9 Grapes25.120.86.229.990.4 Fruits25.344.313.146.165.4 Vegetables and potato14.812.96.5512.661.5 Industrial crops6.57.48.483.832.4 Olives0.50.34.580.242.5 Seeds0.30.24.35014.1 Total100 www.agroinsurance.comwww.agroinsurance.com – Agricultural Insurance and Risk Management Portal www.agroinsurance.com Example of statistical data in Italy (new dynamically-developing market in Europe)

5. Risk statistics in 2004 RiskNumber of policies Area (ha)ValuePremium sumAverage premium rate LossLoss ratio 000 % % Hail 198,153931,0003,294,198249,1377.56153,30861.5 Freeze 8943,00025,8524,82618.67-0 Hail, freeze, storm, other perils 1665,9574256 > <10184.2 Hail and storm 11,72353,000269,06014,2145.2815,867111.6 Multi-peril coverage (MPCI) 4721,0009,1898809.5837642.7 Greenhouses 549127,6095820.46366.2 Example of statistical data in Italy (new dynamically-developing market in Europe)

6. The data is collected on all products, crops and coverage levels. The table represents just a small example of statistical data. Source – RMA USA Statistics in the USA (the biggest agricultural insurance market in the world) www.agroinsurance.comwww.agroinsurance.com – Agricultural Insurance and Risk Management Portal www.agroinsurance.com

7. The results of federal crop insurance program (subsidized) in the USA in 2005-2006: 20062005 Insured area (thousand of acres)242,104245,866 Insurance sum (000 US dollars)49,925,65144,267,155 Premiums collected (000 US dollars) 4,577,9033,949,421 Subsidy (000 US dollars) 2,680,9392,343,974 Premium paid by producers (%) 41,4%40,7% Premium paid by the government (%)58,4%59,3% Pay-outs (000 US dollars) 2,823,0172,358,501 Loss ratio (payouts in % to premiums)62%60% Preliminary results were informed at the beginning of January,2007!!! www.agroinsurance.comwww.agroinsurance.com – Agricultural Insurance and Risk Management Portal www.agroinsurance.com Statistics in the USA (the biggest agricultural insurance market in the world)

8. Statistical data on mandatory crop insurance program in Kazakhstan in 2006 (publicized at the end of January 2007) Indicators20052006(+;-) Total area, 000 ha 14716,614885,0168,4 Insured area, 000 ha 9586,29295,3-290,9 Number of policies 2093112850-8081 Area insured, % 65,162,4-2,7 Premiums collected, million tenge 756668,9-87,1 Payouts, million tenge 914,92177,75 Compensated payouts by the State Agency, million tenge 408,7546,18 * Exchange rate 125,98 tenge = 1 USD www.agroinsurance.comwww.agroinsurance.com – Agricultural Insurance and Risk Management Portal www.agroinsurance.com

9. Statistical data on the federal crop insurance program (subsidized) in Russia in 2006 (basic information was presented at the round-table on January 24, 2007) In 2006 the producers insured 33% of the total cultivated area (17,5 million ha) Number of farms insured increased from 2240 in 2001 to 10665 in 2006 The sum of premiums collected increased from 491 million RUR (2001) to 5,8 billion in 2006. www.agroinsurance.comwww.agroinsurance.com – Agricultural Insurance and Risk Management Portal www.agroinsurance.com

10. Insurance Statistics in Other Countries Canada – the data is collected on all crops, products and coverage level at each province. The results of the crop insurance products are made public after data processing (agricultural insurance and finance) www.agroinsurance.comwww.agroinsurance.com – Agricultural Insurance and Risk Management Portal www.agroinsurance.com

11. Statistics in other countries Spain – statistics is present for years starting from 1980 when the subsidy program was introduced. The data is present on the crops, risks, products and regions similar to the USA. Germany, France, Austria and other countries – statistical data is less developed than in the countries with extensive crop insurance programs mostly because of lack of government involvement Graph – loss volumes in France during 1908- 2006. Source – presentation at Madrid conference in November, 2006 www.agroinsurance.comwww.agroinsurance.com – Agricultural Insurance and Risk Management Portal www.agroinsurance.com

12. Informational Support The quality of informational support and media coverage in Ukraine is worse than in some CIS countries. However CIS countries do not have sufficient public information (statistics and facts) like it is seen in the developed countries (USA, Spain, Canada) The media provides mostly image information and press-releases The web-site of insurance companies do not provide enough of information about the companies activities in agricultural insurance segment The web-sites updated irregularly It is necessary to provide more information for publicizing agricultural insurance programs. The insurers underestimate the role of mass media in the development of agricultural insurance www.agroinsurance.comwww.agroinsurance.com – Agricultural Insurance and Risk Management Portal www.agroinsurance.com