13 may 2020 г.

Index based crop insurance from Agroprosperis Bank, ARX and Aon Ukraine

Agroprosperis Bank, a leading bank for lending to agricultural producers, jointly with ARX, a leader in agricultural insurance (PJSC “Insurance Company “ARX”) and the largest insurance intermediary in Ukraine Aon Ukraine, launched a joint yield index based crop insurance program for small and medium-sized farmers.

Features of the program

The insurance product is as simple as possible and adapted to the needs of small agricultural producers, who are the bank's main customers, as it does not require an on-site visit for crops appraisal and provision of additional documents.

According to Serhii Shchepanskyi, Chairman of Agroprosperis Bank Board, the bank has been financing mainly small and medium-sized agricultural enterprises for 5 years, so it fully understands the specifics of their activities and always offers its borrowers products best suited to their business and current situation.

Serhii Shchepanskyi said:

“Today, after the almost snowless winter and dry spring, when the fields lack moisture, as well as in quarantine and export-import restrictions, we must support our customers and protect them from the risk of crop failure with a convenient and effective tool”.

In turn, the General Director of Aon Ukraine Oleksii Hrinchenko noted that Aon is pleased to cooperate with Agroprosperis Bank and ARX Insurance Company in creating a new insurance product. He also added:

“We are pleased to use our international experience to implement successful new and competitive solutions to protect Ukrainian companies and minimize agricultural risks”.

The General Director noted the extensive experience of Aon Ukraine in agricultural risk insurance: both classical risks and parametric insurance. The company is one of the first in Ukraine to start implementing index insurance solutions for agricultural enterprises, and now agricultural insurance is one of its priorities. Oleksii Hrinchenko added that Aon sees great potential in the use of parametric solutions, as the product is quite simple and clear and involves quick compensation in case of loss.

Andrii Peretiazhko, Chairman of the Board of ARX Insurance Company, noted: “Thanks to the joint efforts of professional market participants, primarily insurance companies, brokers and banks, we will be able to change the stereotypes of Ukrainian agricultural producers and reduce distrust in agricultural insurance accumulated over many years. Together with such partners as Aon Ukraine and Agroprosperis Bank, we have made every effort to make the product as simple and clear as possible for the agricultural producer. Clients will be able to issue a policy of insurance in the Agroprosperis Bank branch at the time of obtaining financing. It is mentioning that the process of resolving potential losses is as simple and fast as possible. We care about our customers and have switched most of the processes to online format".

About Agroprosperis Bank

Agroprosperis Bank is a bank with 100% foreign capital owned by the NAP II investment fund managed by NCH Capital Inc. (USA). The fund's investors are well-known international institutions in the United States and Europe, including the European Bank for Reconstruction and Development (EBRD). Agroprosperis Bank is a specialized bank that focuses on lending to small and medium-sized agricultural producers. AP Bank was the first bank in Ukraine to start financing under agricultural receipts and significantly simplified access to cash resources for farmers who do not have sufficient collateral and are therefore limited in their ability to attract bank financing.

About Aon

Aon plc (NYSE: Aon) is a leading company in the field of risk management, insurance and reinsurance brokerage services, and personnel management consulting. It develops ideas based on expert data, reducing the risks of its customers and helping them to be as effective as possible in doing business. The company has approximately 500 offices, employing more than 50,000 professionals in 120 countries.

Aon in Ukraine has over 25 years of experience in the Ukrainian market. It is the largest insurance and reinsurance intermediary in Ukraine, represented in 3 cities of the country - Kyiv, Lviv and Odesa. The company provides services to more than 400 clients in Ukraine.

About ARX

ARXInsurance Company is the absolute leader of the insurance market of Ukraine according to the National Financial Services Commission in 2019. The company has been successfully operating in the Ukrainian market for 25 years, 11 of which are under the AXA Insurance brand.

Since 2019, ARX is part of the international insurance holding Fairfax Financial Holdings, operating in 40 countries. The number of ARX contracts in 2019 amounted to 1.9 million. The company has 70 offices in different cities of Ukraine, a partner network of 360 service stations, more than 1530 insurance agents. On average, the company pays customers UAH 4 million a day.

Based on materials Agroprosperis Bank

Linnyk Larysa