Deputy Governor Ismajli: CBK supports the development of the insurance sector with the purpose of supporting agriculture

The Deputy Governor of the Central Bank of the Republic of Kosovo, Mr. Lulzim Ismajli attended the agricultural insurance launching ceremony, organized by the Ministry of Agriculture, Forestry and Rural Development, in cooperation with the International Financial Corporation (IFC), a member of the World Bank group.

On this occasion, Deputy Governor Ismajli stated that in the end of 2018, the insurance sector’s assets amounted to EUR 177 million and comprised only 3% of total assets of the financial system, and the low penetration of domestic economies with a ration of around 1.4% of written premiums against the Gross Domestic Products, shows that the insurance sector is not meeting its potential and many households are not insured against principal risks.

“In the light of increasing and strengthening the sector and protecting the policy holder interests, the CBK is continuously engaged in fulfillment of its legal responsibilities as the licensing, regulatory and supervising authority. Insurance of agricultural products is an important tool for managing agricultural risks, without neglecting other techniques as safe methods of technology production and investments. Consequently, the support from the insurance sector, would create a system that would be beneficiary to all related sectors – banks increase agriculture crediting by using the agricultural products insurance as a mean to reduce risks, insurers would increase their insurance portfolio with voluntary products, thus increasing their revenues, famers would have facilitated access to funding for this sector and consecutively ensure its further intensification and development”, stated Deputy Governor Ismajli, adding that the insurance of agriculture products remains the appropriate and necessary alternative, thus particular attention should be paid to it, and institutional support should be provided.