Agriculture Insurance Pool TARSİM announced its Annual Report for 2016. The results show that number of agricultural policies increased by 5 percent; while premium volume grew by 35 percent. With a 25 percent growth in the sum insured, the pool insured a total sum of 23 billion TL during 2016. Supported by state supported agricultural insurance system, agriculture sector maintains its sustainability with a share of 6.1 percent in Gross Domestic Product and a size of 52 billion USD.
As in the rest of the world, agriculture has an indispensable role for Turkey as it feeds the population, generates national income and employment, addresses the raw materials requirements of the industry, and makes direct and indirect contributions to trade. Turkish agriculture sector is in a unique position; giving Turkey the 7th largest agricultural economy in the world and 1st in the European Union, being listed in the world’s top 5 global producers for more than 30 products, and exporting 1.681 agricultural product to 192 countries.
Accounting for 6.1 percent of Gross Domestic Product in 2016, agriculture sector provides employment for 5.3 million people in Turkey. 19.5 percent of the working population is employed in the agricultural sector. However, agriculture is highly open to risks; not only meteorological but also economic, social, technological, and personal.
According to the report, crop insurance is the most popular agricultural insurance product and largely dominates this segment, producing 94.6 percent of all agricultural insurance policies, 75 percent of written premiums, 65.8 percent of total sum insured, and 82.2 percent of total losses paid. Insuring all types of crops against the risks such as hail, storm, tornado, fire, landslide, earthquake, flood, and wild boar attack; crop insurance grew by 4 percent in number of policies over the same period of last year, reaching 1 million 366 thousand. During the same timeframe, crop insurance premiums increased by 40 percent and reached 974 million TL; while total sum insured reached 15 billion TL, up by 21 percent.
By product line, number of wheat policies reached 556 thousand and dominated total number of policies issued in crop insurance with a share of 41 percent. Barley followed with a share of 9 percent and 122 thousand policies, and sunflower with a share of 8.6 percent and 117 thousand policies. On the other hand, grape insurance is the top product in terms of written premiums, generating 178 million TL in premiums and 18 percent of crop insurance premiums. Barley premiums follow as second with 116 million TL and a share of 12 percent.
Frost is the biggest risk causing agricultural losses
Same as the previous year, frost risk was the biggest risk for the agriculture sector during 2016. Losses paid due to frost amounted 334 million TL in 2015, which increased by 30 percent and reached 435 million TL in 2016. 63 percent of all losses were caused by frost; followed by hail with 32 percent, storm with 3.5 percent; and wild boar attack with 0.4 percent. The system paid 691 million TL during 2016 to ensure the sustainability of crop production. Largest amount of payments was made for grapes with a share of 30 percent in total losses paid. Apricot followed with a share of 24 percent, and apple with 7.6 percent. Compared to the previous year; losses paid for grapes decreased by 19 percent, but increased by 56 percent for apricot.
Nearly 2 million cattle, sheep and goats are insured
Cattle Insurance gets a share of 18.4 percent in total premiums written in agricultural insurance segment, generating a premium volume of 240 million TL. Cattle Insurance provides coverage for the dairy and fattening cattle and buffaloes registered to the Veterinary Information System (TÜRKVET) against the risks such as various livestock diseases, pregnancy, birth, surgical interventions, accidents, poisoning, natural disasters, and compulsory slaughter. During 2016, 35.777 policies were issued in this insurance line, with total sum insured reaching 3.5 billion TL. 580 thousand 824 cattle were insured in 2016; with a growth of 34 percent in number of policies, 41 percent in total sum insured, 19 percent in premium volume and 25 percent in number of insured animals. As to the reasons for losses paid in cattle insurance during 2016, death was the most common reason, accounting for 54 percent of losses paid in this line; followed by compulsory slaughter with 33 percent, baby death by 7 percent and abortion with 6 percent. Over the same period of previous year, losses paid in Cattle Insurance increased by 32 percent and a total of 128 million TL was paid during 2016.
Sheep and Goats Insurance provides coverage for the sheep, goats, rams and male goats registered to the Animal Registration System (TÜRKVET) against the risks such as various animal diseases, pregnancy, birth, surgical interventions, accidents, poisoning, natural disasters, death and compulsory slaughter since 2011. During 2016, premiums written in sheep and goats insurance increased by 8 percent, up to 27.5 million TL. Its share in overall premium volume of agricultural insurance stood at 2.1 percent. 12 thousand policies were issued in this line, up by 1 percent compared to the previous year. Total sum insured, on the other hand, increased by 64 percent and reached 563 million TL. 646 thousand sheep and goats were insured in 2015, which grew substantially in 2016 and reached 1 million 124 thousand animals with a growth of 74 percent.
Total sum insured by Greenhouse Insurance is 3.2 billion TL
With a share of 4 percent in overall agricultural insurance premiums, Greenhouse Insurance generated 20 thousand policies during 2016, up by 12 percent compared to the previous year. Premium volume increased by 31 percent and reached 48 million TL; and total sum insured stood at 3.2 billion TL. Greenhouse Insurance can only be bought following a risk analysis, and provides coverage for agricultural losses against the risks such as hail, storm, tornado, fire, landslide, earthquake, and vehicle collision, as well as damages to the structure of greenhouses.
61 policies were issued in Aquaculture Insurance during 2016, and its total premium volume standing at 4 million TL. Total sum insured in this line was 83 million TL.
Bee Hives insurance, which began providing coverage in 2014 for modern, active hives (including the bee colony) against the risks such as storm, tornado, fire, landslide, earthquake, flood, and transportation. The number of policies in this line reached 10 thousand, with a premium volume of 5.5 percent; while the total sum insured stood at 436 million TL.
Providing coverage for the poultry grown in the facilities with closed circuit production and with the bio-safety and hygiene measures implemented against the risks such as poultry diseases, accidents, poisoning, natural disasters, and fire; Poultry Insurance generated a premium volume of 1 million 470 thousand TL during 2016. Its share in overall agricultural insurance premiums stood at 0.1 percent. This line insured a sum of 104 million TL through 225 policies. |
