Autumn of the last year was marked by a much higher interest of farmers in sowings insurance, because after the excessive rainfall of 2017 and the unfavourable weather patterns of 2018, farmers are even more concerned about changeable weather conditions, resulting in damage to sowings, informs BTA Baltic Insurance Company AAS (hereinafter – BTA).

In 2018, farmers demonstrated strong interest in winter sowings insurance. Altogether 173 farms were insured with a total area of 53 000 ha. As compared to 2017, it is almost three times as much. As accounts the regions, Zemgale demonstrated the strongest interest in insurance of winter sowings: 66 customers and 27 000 ha of sowings insured; in Vidzeme – 50 customers and approximately 10 000 ha; in Latgale – 34 customers insured approximately 7 000 ha and in Kurzeme 22 customers – approximately 9000 ha.

In the end of 2018, farmers mostly insured winter wheat – about 30 000 ha and winter rape of about 17 000 ha, however, 6 000 ha of rye and barley sowings were insured as well.

The average cost of the input by the farmers themselves for insurance of winter sowings depending upon the sum insured and the selected overseeding limits amounted to 34 euro/ha on winter rape and 19 euro/ha on winter wheat.

“Last autumn, preceded by previous winter crops going wintered, about 70 percent of farms, insured by BTA, addressed us; almost 700 000 euros were disbursed to the farms for the crops going wintered. While in spring of 2018, farmers were eager to insure summer sowings, whereupon less attention as drawn to beforehand. Large areas of winter sowings were affected by frost without snow, and that is why farmers were forced to seed summer sowings, which were later insured, instead of winter sowings. In 2018, 106 farmers insured summer sowings, 14 500 ha were insured against summer risks, for instance, hail, rain and storm”, recalls BTA Baltic Risks Underwriting Department director Ivo Danče.

At the end of May 2018, there were 106 farms insured against summer risks, whereupon a total sum insured reached 20.5 million euros.

162 000 euros in insurance indemnities were disbursed for summer sowing insurance, mainly for damage caused by hail and rain, mostly in Zemgale and Latgale. The average cost of the input by the farmers themselves for insurance of summer rape depending upon the sum insured and the selected risk option amounted to 12 euro/ha. As for summer wheat, the average input depending upon the sum insured and the selected risk option amounted to 4 euro/ha.

As previously reported, due to unfavourable weather condition in winter of 2017/2018, considerable areas of grain sowings went rotten and wintered, and that is why BTA disbursed a sum larger by almost 30 times than one year ago in insurance indemnities to farmers. Altogether grain-sowing farmers have received almost 700 000 euros in compensations for winter damage to sowings. As compared to the total amount in indemnities on winter sowings – 27 thousand euros disbursed the year before. The problems began as early as the rainy autumn did. Tractors struggled in flooded fields that is why winter sowing was delayed and the plants never managed to get ready for winter. Things were going likewise for those who managed to sow the grains, because due to humidity part of sowings went rotten before the first frost began. Farmers, who grew winter rape and winter wheat, suffered the largest losses.

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 largest shareholder of BTA is Vienna Insurance Group AG with close to 200 years of experience in the insurance business. With about 50 companies in 25 countries and more than 25,000 employees, Vienna Insurance Group is the clear market leader in its CEE markets. Vienna Insurance Group is the best-rated company of ATX, the leading index of Vienna Stock Exchange with a rating of A+ with stable outlook from Standard & Poor’s; its share is also listed on the Prague Stock Exchange.

Additional information:

Elīna Rasmane

Marketing and Public Relations Department Director

BTA Baltic Insurance Company AAS

e-mail elina.rasmane@bta.lv