Hailstorm last week caused an increase in demand for insurance of sowings

20.06.2019

The severe thunderstorm, rampaging over Latvia, especially in Kurzeme, last week, caused extreme natural phenomena, giving occasion to rapid increase of demand for insurance of sowings, testifies the information of BTA Baltic Insurance Company AAS (hereinafter – BTA).

 

Last week, when the thunderstorm was over, during which hailstorm with large hailstones destroyed not only sowings, but also damaged buildings, cars and inflicted other damage, especially in Kurzeme, BTA received more than 130 insurance claims of the total volume having already exceeded 500 000 euros. More than 300 000 euros were received directly from farmers for damage to sowings by hail, whereof 100 000 euros have already been disbursed.

 

“At the end of May and in the beginning of June there were farmers, who, upon receipt of sowings insurance offer, postponed their decision on the purchase of insurance policies until later. However, after the hailstorm of 11 June, the next business day was marked by a 40 % increase of interest on this type of insurance. Owners of sowings needed no more time to think it over; they made their decision to purchase the policy as soon as they received an offer”, recalls BTA Baltic Risks Underwriting Department director Ivo Danče.

 

In 2018, farmers had strong interest in winter crops insurance. Altogether, there were 173 farms insured of the total area of 53 000 hectares. As for the regions, Zemgale was marked by the strongest interest in insurance of winter crops: there were 66 customers and 27 000 hectares insured; 50 customers and approximately 10 000 hectares in Vidzeme; in Latgale – 34 customers insured about 7 000 hectares and in Kurzeme, there were 22 customers with about 9 000 hectares insured.

 

At the end of 2018, farmers generally insured winter wheat – about 30 000 hectares and winter rape amounting to approximately 17 000 hectares, however, 6 000 of rye and barley were insured as well.

 

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