Agricultural crop insurance in Poland (2010)
Author: Aleksandra Szelągowska, MARD, Poland
File: 
Polish government considers insurance to be the most useful tool of good risk management in crisis situations
Legislation applied
Agricultural insurance in Poland is regulated by several legislative acts, inluding:
- Act of 7 July 2005 on agricultural crop and livestock insurance (Dz. U. No 150, item 1249, as amended)
- Act of 22 May 2003 on compulsory insurance, Insurance Guarantee Fund and Polish Motor Insurers' Bureau (Dz. U. No 124, item 1152, as amended).
EU regulations are also applied, namely:
- Community guidelines for state aid in the agriculture and forestry sector 2007 - 2013 (OJ C 319 of 2006) - Chapter V
- Commission Regulation (EC) No 1857/2006 of 15 December 2006 on the application of Articles 87 and 88 of the Treaty to State aid to small and medium-sized enterprises active in the production of agricultural products and amending Regulation (EC) No 70/2001 (OJ L 358 of 2006) – Article 12
- Council Regulation (EC) No 73/2009 of 19 January 2009 establishing common rules for direct support schemes for farmers under the common agricultural policy and establishing certain support schemes for farmers, amending Regulations (EC) No 1290/2005, (EC) No 247/2006, (EC) No 378/2007 and repealing Regulation (EC) No 1782/2003 (OJ L 30) – Articles 69 and 70
Features of subsidized agricultural insurance
Large enterprises and enterprises active in the processing and marketing of agricultural products are excluded from the aid.
Subsidised insurance may not be available in one insurance company or one group of companies only. This provision helps to maintain healthy competition at the market.
The government covers 80 % of premium in the case of insurance against losses caused by unfavourable atmospheric conditions comparable to natural disasters.
At the same time 50 % of premium is subsidized in the case of insurance against losses caused by unfavourable atmospheric conditions and animal or plant diseases or pest infestations.
Insurance coverage is offered against weather conditions, such as: frost, hail, ice, rain or drought, which cause losses exceeding 30 % of the farmer’s average annual production for the previous three years or the average for three years determined based on data from the previous five years, excluding the highest and the lowest value.
State budget subsidies to agricultural crop and livestock insurance (EUR 1 = PLN 3.9)
|
Year |
Allocated in the Budget Act (EUR million) |
Used (EUR million) |
|
2006 |
14.1 |
2.5 |
|
2007 |
53.9 |
8.1 |
|
2008 |
139.7 |
38.4 |
|
2009 |
38.5 |
33.4 |
|
2010 |
76.9 |
|
Insurance policies purchased by farmers with budget subsidy
|
Year |
Number of policies - in total |
Agricultural crop insurance policies |
Livestock insurance policies |
Area of agricultural crops insured (ha) |
|
2006 |
11,056 |
10,738 |
318 |
311,740 |
|
2007 |
28,828 |
28,412 |
416 |
575,029 |
|
2008 |
87,370 |
87,150 |
220 |
1,832,036 |
|
2009 |
144,328 |
144,080 |
1,248 |
2,808,105 |
Cash flows in agriculture related to property and personal insurance in 2006 – 2008 in PLN million based on IERiGŻ data
|
Year |
Property and personal insurance contributions |
Property and personal insurance claims |
Balance |
|
2006 |
417 |
153 |
264 |
|
2007 |
486 |
319 |
167 |
|
2008 |
524 |
315 |
209 |
Direction of Changes
The state budget contribution to compensations by means of a reasecuration system covering, apart from drought, the other risks specified in the Act of 2005
Using the Community budget in line with the rules which will be applicable after 2013
| 
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