Crop fields destroyed by the heavy rains for one million euros already
The heavy rains and hail have severely damaged crop fields in a large part of the territory of Latvia. BTA Baltic Insurance Company AAS (BTA) has received more than 100 insurance claims from farmers for a total amount of more than one million euros by mid-July, and it is expected yet to increase significantly.
The natural disaster that hit many regions of Latvia in the first half of July brought a lot of unpleasant moments to farmers. Social networks were already flooded by sad stories about greenhouses torn by the wind and grain beds chopped by hail, now they are followed by news from farmers – the rains have left large areas of fields in lodgings and it will no longer be possible to obtain grain from them. Farms in Zemgale have suffered the most, and the biggest damage was done to winter wheat of the Skagen variety. Considerable damage has also been caused to the fields of summer wheat and barley, which exacerbates the already grim situation on the global grain market, where concerns of a sharp rise in prices in the food sector has occasionally been voiced.
“As by now, we have already received more than 100 claims for compensation, although communication with customers makes us believe that this is only the beginning. Farmers keep surveying the fields and reporting yet more damage discovered, so the losses will be significantly higher. Therefore, we can already predict that this summer the crops have suffered more than last year, when the greatest threat to crops was the extreme heat,” concludes Kārlis Liepiņš, the Director of BTA Insurance Claims Handling Department. 70% of all applications were received within one week, when the territory of Latvia was swept over by a cyclone.
BTA is the Latvian market leader in crop fields insurance, offering, for a streak of years, farmers to insure their crops, legumes and oil plants. BTA also is the pioneer insurer in Latvia, who offers an option to get insured against damages caused by wild animals and birds, as well as third-party illegal activity, lightning strike and fire risk.
According to the experience of the past years, various natural disasters become an increasing threat to crops, on the other hand, farmers now have an option to get their crop fields insured against adverse weather conditions, and this option also has earmarked funding from the European Union and the national budget, in the light of this, the Ministry of Agriculture has not planned any compensations be paid from the national budget, thus moving the protection of agricultural crops in the direction of the insurance realm.
About BTA
BTA Baltic Insurance Company is one of the leading insurance companies in the Baltics, offering the broadest range of non-life insurance services in Latvia, Lithuania and Estonia. BTA employs more than 1,000 employees in the Baltics. The sole shareholder of BTA is Vienna Insurance Group AG (VIG), the leading insurance group both in Austria and in the entire Central and Eastern European (CEE) region. Around 50 insurance companies in 30 countries form a Group with a long-standing tradition, strong brands and close customer relations. The more than 25,000 employees in the VIG take care of the day-to-day needs of more than 22 million customers. VIG shares have been listed on the Vienna Stock Exchange since 1994. The VIG Group has an A+ rating with stable outlook by the internationally recognised rating agency Standard & Poor's. VIG cooperates closely with the Erste Group, the largest retail bank in Central and Eastern Europe.
Additional information:
Elīna Zvejniece
Marketing and Public Relations Department Director
BTA Baltic Insurance Company AAS
e-mail elina.zvejniece@bta.lv
