Swiss InsurTech firm CelsiusPro has completed a multi stakeholder international tender on behalf of the German development bank KfW and the Central Bank of Armenia for the technical assistance to establish a nation-wide agricultural re/insurance scheme in Armenia.
CelsiusPro defined the terms of reference (ToR), organised the international tender for multiple assignments, and managed the evaluation and contract negotiations with selected consultants.
The Armenian government is aiming to improve the productivity of the country’s agricultural sector and address risks related to climate change and adverse weather by implementing a robust insurance scheme, and engaged CelsiusPro for its consultancy services and expertise in technical assistance.
The government believes a nation-wide re/insurance scheme will improve the commercial viability of agricultural investments by reducing the vulnerability of Armenian farmers and mitigating the production risks and financial losses associated with weather-related perils.
The agricultural scheme will now undergo an 18-month set-up phase, which will include data gathering, actuarial analysis, product design, and the creation of the National Agricultural Management Agency (NARMA), a governing body of private and public re/insurance market actors.
Running simultaneously, a 42-month implementation phase will involve the preparation and management of pilot insurance products, the recalibration of pilot products, and the eventual launch of the scheme.
Armenian farmers are expected to be able to access re/insurance policies in the pilot phase from early 2019.
As a consultancy service, CelsiusPro has previously conducted a feasibility study for a national crop and livestock insurance scheme in Rwanda, acted as a calculation agent for Kenya Livestock Insurance Program (KLIP), and developed a pricing tool for the yield based agricultural insurance scheme (PMFBY) in India.