Ukraine and Poland should cooperate in the field of ASF risk insurance

Ukraine should start cooperation with European partners in the field of insurance of ASF risks with Poland. So says the Chairman of the Board of Directors of KSG Agro Sergey Kasyanov, commenting on the agenda of the visit of the President of Poland Andrzej Duda to Ukraine.

The catastrophic situation of the reduction of pig livestock in Ukraine due to the ASF epidemic can be solved by attracting the services of European reinsurers, primarily from Poland.

«“Ukrainian insurance companies do not yet have sufficient financial capacity to insure risks in connection with the infection of pigs with the ASF virus. In Ukrainian history, so far there is only one precedent of payment of insurance compensation for ASF risk by one of the domestic insurers for a relatively small amount even by the standards of our average livestock companies - UAH 164 million, - says Serhiy Kasyanov, - and the absence of a real mechanism of insurance compensation for losses from ASF leads to the fact that our pig farmers, by hook or by crook, sell contaminated pork to the trade."

According to Sergei Kasyanov, several European states, together with Ukraine, found themselves in the same chain of ASF problems. “Let's say that ASF outbreaks were recorded in Germany, which they explain by the influence and proximity of the neighboring Polish market. In turn, the Poles call one of the reasons for the problems with the virus - the spread of ASF in neighboring Ukraine. So isn't it time to break this chain and help each other? If Ukrainian insurance companies are not yet able to provide effective insurance support, then by involving European reinsurers from Poland and neighboring Germany in the problem, we will help change the situation in a positive direction. Partnership with European reinsurers, primarily from Poland and its neighbors, Germany and other European states, can help Ukraine. The provision of such real reinsurance compensation in the interests of both Poland and Germany is capable of breaking the vicious chain of ASF spread on the continent, ”the agrarian shared his opinion.

“We expect that the widespread insurance coverage by Polish and German reinsurers in the event of swine infection with the ASF virus, on the one hand, will prevent the contaminated product from reaching consumers. On the other hand, it will allow Ukrainian agricultural holdings, which are taking sufficient measures to protect themselves from the ASF virus, to meet the domestic demand for pork and at the same time not be a competitor to Polish and German pig farmers, ”said Sergei Kasyanov.

The agrarian believes that the issues of partnership of the Ukrainian side with Polish reinsurers and the beginning of the preparation of relevant documents through the creation of working groups of the two countries with the effective participation of the Ministry of Economy of Poland could be considered during Andrzej Duda's current visit to Ukraine.

SOURCE: infoindustria.com.ua