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    The document summarizes Turkey's experience with public-private partnerships for agricultural insurance. It outlines Turkey's new agricultural insurance system established in 2005 through the Agricultural Insurance Law. The key aspects of the system include the establishment of an Agricultural Insurance Pool managed by TARSIM that involves the government, private insurers, and agricultural organizations. Insurers participate in the pool, which provides reinsurance and redistributes risks. The government provides premium subsidies to encourage farmer participation in the voluntary program.

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    PPT

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    The document summarizes Turkey's experience with public-private partnerships for agricultural insurance. It outlines Turkey's new agricultural insurance system established in 2005 through the Agricultural Insurance Law. The key aspects of the system include the establishment of an Agricultural Insurance Pool managed by TARSIM that involves the government, private insurers, and agricultural organizations. Insurers participate in the pool, which provides reinsurance and redistributes risks. The government provides premium subsidies to encourage farmer participation in the voluntary program.

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    The document summarizes Turkey's experience with public-private partnerships for agricultural insurance. It outlines Turkey's new agricultural insurance system established in 2005 through the Agricultural Insurance Law. The key aspects of the system include the establishment of an Agricultural Insurance Pool managed by TARSIM that involves the government, private insurers, and agricultural organizations. Insurers participate in the pool, which provides reinsurance and redistributes risks. The government provides premium subsidies to encourage farmer participation in the voluntary program.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as PPT, PDF, TXT or read online from Scribd
    Download as ppt, pdf, or txt
    129 views24 pages

    PPT

    Uploaded by

    Vinothini Randy
    The document summarizes Turkey's experience with public-private partnerships for agricultural insurance. It outlines Turkey's new agricultural insurance system established in 2005 through the Agricultural Insurance Law. The key aspects of the system include the establishment of an Agricultural Insurance Pool managed by TARSIM that involves the government, private insurers, and agricultural organizations. Insurers participate in the pool, which provides reinsurance and redistributes risks. The government provides premium subsidies to encourage farmer participation in the voluntary program.

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    of 24

    Public-Private Partnerships for Risk Management in Agriculture: Turkish Experience

    Public-Private Partnership in Risk Management in Agriculture in Turkey

    After several unsuccessful attempts for the establishment of a sound agricultural insurance system in Turkey, longexpected agricultural insurance law allowing public-private partnership, offering technical and economic resources to preserve the agricultural sector from suffering under difficult conditions, finally was passed on 14.06.2005.

    Public-Private Partnership in Risk Management in Agriculture in Turkey

    Aim of the Agricultural Insurance Law No. 5363


    Determination of procedures and principles regarding the implementation of agricultural insurance in order to compensate farmers for losses occurring in their agricultural activities due to natural risks.

    Legal Regulations for the New Agricultural Insurance System

    Law (5363/ 2005 June 14th) for Agricultural Insurance. Regulation (2005 Sept. 22) for Working Procedures and Principles of Agricultural Insurance Pool. Regulation (2005 Sept. 22) for Implementation of Agricultural Insurance.

    Institutions which are Involved in the New Agricultural Insurance System of Turkey

    Government

    Private Sector

    Organizations
    (Insurance and Agriculture)

    Ministry of Agriculture and Rural Affairs

    Undersecretariat of the Treasury

    Insurance Companies

    Association of the Insurance and Reinsurance Companies of Turkey

    Union of the Turkish Chambers of Agriculture

    Agricultural Insurance Pool TARSIM

    TSV

    Institutions which are Involved in the new Agricultural Insurance System of Turkey

    Agricultural Insurance Pool Management Committee Managing Company (TARSIM)

    Agricultural Insurance Pool

    Members of the Management Committee (7) : Ministry of Agriculture and Rural Affairs (2) Undersecretariat of the Treasury (2) Association of the Insurance and Reinsurance Companies (1) Union of the Turkish Chambers of Agriculture (1) Managing Company of the Pool - TARSIM (1)

    Agricultural Insurance Pool

    Duties of the Management Committee Determination of the principles of implementation regarding the operation of the Pool. Carrying out studies for determination of crops, risks, and regions to be supported. Carrying out studies for determination of the ratio of subsidies on the basis of crops, risks and regions.

    Fixing problems faced in practice and carrying out studies to solve them.

    Agricultural Insurance Pool

    Duties of the Management Committee

    Determination of principles and procedures for loss adjustment.


    Making contracts with insurance companies writing agricultural business within the context of this law. Making contracts with the Managing Company regarding working principles and procedures. Determination of the commission of the insurance companies in return for their premium transfer.

    Agricultural Insurance Pool

    Managing Company (TARSIM)


    TARSIM, a management entity, was established as a corporation by the insurance companies writing agricultural business in order to carry out all tasks of the Pool, within the context of the law. Insurance companies (presently 16) participate to TARSIM with equal shares.

    Agricultural Insurance Pool

    Duties of TARSIM Carrying out all kinds of works and organizations for loss adjustment activities. Carrying out the activities concerning risk sharing, risk transferring and implementation of reinsurance plan, and presenting reinsurance program for approval to the Management Committee of the Pool. Implementation of the decisions taken by the Management Committee and fulfilling the secretarial works of the Pool. Collection of the premiums and payment of indemnities.

    Agricultural Insurance Pool

    Duties of TARSIM Informing farmers regarding agricultural insurance and carrying out public relations and publicity campaigns. Keeping statistics and preparing reports of the agricultural insurance for the Management Committee. Direction of resources of the Pool for investment. Making suggestions to the Management Committee in necessary cases. Carrying out all other works and operations related to the management of the Pool.

    Institutions which are Involved in the new Agricultural Insurance System of Turkey

    Duties of the Ministry of Agriculture and Rural Affairs Taking necessary measures to develop and expand agricultural insurance. Presenting proposals for approval to the Council of Ministers regarding premium subsidies on the basis of crops, risks, and regions. Monitoring regular and proper payments of indemnities. Organization of seminars, training and publications. Cooperation with the Pool and Managing Company. Payment of the premium subsidies of the farmers to the Managing Company.

    Basic Elements of the New Agricultural Insurance System in Turkey

    Risks to be Covered
    Natural risks to be covered such as drought, hail, flood, storms, tornadoes, earthquakes, fire,

    uncontrollable pests, diseases, and accidents for crops,


    greenhouses, agricultural buildings, agricultural machinery and livestock shall be determined by the

    Council of the Ministers based on the proposals of the


    Management Committee of the Pool.

    Basic Elements of the New Agricultural Insurance System in Turkey

    Participation
    Participation of the farmers in the Insurance System is voluntary.

    All insurance companies which have a licence for selling agricultural insurance shall participate to the agricultural insurance pool with equal shares.

    Basic Elements of the New Turkish Agricultural Insurance System


    Marketing and Sale of Insurance Sales and marketing activities shall be carried out by the traditional way and means of the insurance sector: Insurance Intermediaries Other Sales Channels of insurance companies

    Insurance contracts shall be issued with the name of the underwriting insurance company according to the conditions and standards as determined by the Pool.

    Basic Elements of the New Agricultural Insurance System in Turkey

    Risk sharing and Reinsurance All premium collected by insurance companies and total risk shall be transferred to the Pool. Pool holds the authority to retrocede the risks to insurance companies (subject to acceptance) . In cases when sufficient retrocession is not realized, then the government will participate automatically for the rest of the risks.

    Basic Elements of the New Agricultural Insurance System in Turkey

    Risk Sharing and Reinsurance


    Necessary arrangements for reinsurance agreements with domestic and international companies and institutions shall be carried out by TARSIM. In case protection received from domestic and international reinsurance market is not sufficient, the excess, which shall be determined by the Council of Ministers, shall be guaranteed by the Govenment.

    Basic Elements of the New Agricultural Insurance System in Turkey

    Premium Subsidy
    With the aim of promoting the development of the agricultural insurance, premiums of the farmers shall be subsidized by the Government. The amount of premium subsidy shall be determined by the Council of the Ministers annually according to the proposal of the Ministry of Agriculture and Rural Affairs on the basis of crops, risks, regions and farm size. Only the registered farmers in the Farmer Registration System shall be eligible for premium subsidy.

    Basic Elements of the New Agricultural Insurance System in Turkey

    Supervision Insurance implementations of TARSIM shall be supervised by the Undersecretariat of the Treasury, all other operations shall be supervised by the Ministry of Agriculture and Rural Affairs.

    TURKISH AGRICULTURE INSURANCE ORGANISATION 2005

    PRIME MINISTRY Turkish Treasury

    AIF AGRICULTURAL INSURANCE FOUNDATION (VAKIF-TSV) Loss Assesment Organization Risk inspection Organization Research and Development (Data collection, Databank, GIS, Risk Analysis) Training Support INFRASTRUCTURE FOR AGROPOOL

    Reinsurance Companies

    INSURANCE COMPANIES Underwriting Marketting Sale Claim Payment


    Claim Payment

    Farmers
    Source: TSV

    GOVERMENT SUBSIDIES TURKISH AGRICULTURE INSURANCE ORGANISATION 2006


    Ministry of Agricultural and Rural Affairs (MARA) PRIME MINISTRY Turkish Treasury

    Premium Subsidies

    AIF AGRICULTURAL INSURANCE FOUNDATION (VAKIF-TSV)


    TARSM_ADMINISTRATION AND SERVICES COMPANY FOR POOL

    Reinsurance Companies

    INSURANCE COMPANIES Underwriting Marketing Sale Claim Payment


    Claim Payment

    Loss Assesment Organization Risk inspection Organization Research and Development (Data collection, Databank, GIS, Risk Analysis)
    AIF AGRICULTURAL INSURANCE FOUNDATION (VAKIF-TSV) Training for Lossadjusters risk inspectors And Insurance sector

    Premium Collection Reinsurance Supply

    Source:

    TSV

    (Ministry of Agricultural and Rural Affairs, Prime Ministry Turkish Treasury, Association of the Insurance and Reinsurance Companies of Turkey, Union of Turkish Chambers of Agriculture, Administation and Services Company for Pool-TARSM)

    AGRICULTURAL INSURANCE POOL Board

    Claim Payment

    Farmers

    Thank you for your attention.....

    Public-Private Partnerships for Risk Management in Agriculture: Turkish Experience


    Global Conference on Insurance and Reinsurance Pools for Natural Catastrophe Risk (8-9 December 2005 stanbul)

    Blent BORA Director General, TARSIM Agricultural Insurance Pool Management, Turkey

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