Kyiv, Ukraine, December 18, 2007—
IFC, a member of the World Bank Group, will be working with Ukraine’s Ministry of Agrarian Policy to reform the country’s agricultural insurance industry. IFC will engage state agencies to help develop a strategic plan, promote improvements in the regulatory environment, and establish structures for sector representatives.
Limited understanding of risk management in the farm sector hinders the development of the agri-insurance industry. This also affects farmers’ ability to access finance and grow their operations. Other challenges include the technical capacity of insurance companies, a lack of actuarially sound insurance products, limited access to reinsurance. Farmers also have low confidence in insurance.
IFC will work with key regulatory, institutional, and commercial partners to improve the environment for agri-insurance, develop the capacity of insurance companies, and work directly with farmers in a pilot implementation program. The project will help build the technical and management capacity of insurance companies and help farmers implement new insurance products. The project will also engage in a public education campaign.
“The project’s cohesive approach will help increase awareness about agri-insurance and improve products and delivery, boosting the volume of insurance contracts,” said Gary Reusche, IFC Project Manager.
This effort is part of the IFC Ukraine Agri-Insurance Development Project, which was launched in mid-2007 with support from the Canadian International Development Agency.
About IFC
IFC, a member of the World Bank Group, fosters sustainable economic growth in developing countries by financing private sector investment, mobilizing private capital in local and international financial markets, and providing advisory and risk mitigation services to businesses and governments. IFC’s vision is that poor people have the opportunity to escape poverty and improve their lives. In FY07, IFC committed $8.2 billion and mobilized an additional $3.9 billion through loan participations and structured finance for 299 investments in 69 developing countries. IFC also provided advisory services in 97 countries. For more information, visit
www.ifc.org
.
About CIDA
The Canadian International Development Agency is a governmental agency with a mandate to support sustainable progress in developing countries to reduce poverty and contribute to a more secure, equitable, and prosperous world. One of its objectives is to work with countries in transition to stimulate growth by building self-sustainability among local people and mobilizing available resources. CIDA supports foreign aid projects in many countries around the world.
