Electronic platform for compulsory insurance in crop production to be created as part of agricultural sector digitalization — K. Aituganov

At the meeting of the Government chaired by the Prime Minister Bakytzhan Sagintayev, the First Vice Minister of Agriculture Kairat Aituganov reported on the improvement of compulsory insurance in crop production.

The law on compulsory insurance in plant growing was adopted in 2004. The purpose of the law is to protect the property interests of farmers from the effects of adverse natural phenomena.

Meanwhile, in recent years there has been a decline in the insured areas - from 84% to 56%. In this connection, the Ministry of Agriculture proposes reforming the system in two ways.

The first is the translation of the compulsory insurance system in plant growing into an electronic format.

"The agency plans to create an electronic platform on which all business processes will be implemented. The system will be integrated with electronic databases, which will help identify the input information. For example, integration with an automated information system of the state land cadastre will not allow the farmer to claim a piece of land that does not belong to him," Kairat Aituganov said.

According to him, the system will use remote sensing images of the earth, which will allow us to trace the vegetation index at the claimed site. It is also planned to use the space equipment: space images can be followed by weather conditions - humidity, air temperature, land.

Thus, the system will provide the commission with information on the dynamics of crop production on the field and damage assessment. The Commission will only have to confirm or deny this fact.

The second is the regulation of the activities of mutual insurance societies (MIS). It is proposed to exclude the possibility for the MIS to reduce insurance premiums or suspend their payment.

"The proposed electronic system will also avoid violation of the law. For example, in MIS the number of members cannot be less than 250. Today, however, no one controls it - there are MIS, with only five members. In turn, the system will not allow registration of the MIS with a smaller number of members," the first vice-minister reported.

As a result, the accessibility and transparency of the insurance system and the confidence in the insurance mechanism in general will increase and an objective analysis of insured events will be provided. This infrastructure will allow further transition to voluntary insurance in crop production.

The evaluation system already exists and does not require budget expenditures. The system will be supported by contributions from insurers that do not exceed 2 tenge per 1 hectare of the insured area. For farmers, the system will be free of charge.

"The implementation of this project will allow the introduction of a culture of precision agriculture within the overall digitalization of the agricultural sector," the Deputy Minister summed up.

The chairman of the National Bank, Daniyar Akishev, the chairman of the Atameken NCE, Ablay Myrzakhmetov, the akim of the Kostanai region, Archimedes Mukhambetov, the Almaty region, Amandyk Batalov, the Minister of Agriculture, Askar Myrzakhmetov made comments on the issue.

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