Business

Agricultural insurance will be number 1 in the insurance sector

Increasing importance in the world, agriculture and food are also climbing to the first place in insurance. Rustem Gungor, General Manager of Gri Sigorta, said, “Agriculture will surpass vehicle insurance and take the first place.”

Climate change, population growth rate and the rapid increase in the demand for food have made insurance in this area more important than ever. The premium growth in agricultural insurance also confirms this fact. As of 2020, the number of policies increased from 2.23 million to 2.51 million. At the same time, the number of insured has increased from 580 thousand to 656 thousand. There is a growth of around 13% in both areas. Damage payments have doubled. Damage payment of ₺1.1 million in 2020 increased to ₺2.66 million in 2021. Rustem Gungor, General Manager of Gri Sigorta, who is the guest of the Safe Life program at APar and has 30 years of industry experience in the field of agricultural insurance, “Currently, the biggest field of the sector is vehicle insurance, but you will see that agricultural insurance will take the first place in this field in the future. It is an area with a very high development potential. Its importance is increasing day by day.”

DAMAGE WILL BE DEFINED BY SATELLITE

Underlining that with the increase in damages in the field of agricultural insurance, it will not be possible to cover this even with the army of experts, saying, “Detections will now be made with drones and satellites. There are studies on detections with satellites. I know that. In the coming period, diseases will also begin to be covered. All risks will start to come into play and the system will grow.”

RISK-FREE AREAS SHOULD ALSO BE INSURED

Emphasizing that the pool will grow and the costs will decrease with the increase in the total number of insured and the amount of the premium, Gungor said, “We see that the farmer insures the risky areas more. The farmer does not insure that area if nothing happens for 4-5 years. However, that area must also be included in the system. If we add risk-free areas to the system, the price will be cheaper and the growth will be much higher, bringing prices down.”

MUST BE A SPECIALIZED AGENCY IN AGRICULTURE

Gungor stated that an agency network that knows the agriculture sector and is specialized in this field should be developed, “One of our most important problems is the inadequacy of human resources who know agriculture and are in the field. Agencies have also reduced selling products in this area, because banks are forcing customers to sell insurance while taking loans. It is imperative that the agencies trained in this field enter the system and the number of them increases.”

Source: Sabah / Translated by Irem Yildiz

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