AGROPROSPERIS BANK TOGETHER WITH ARX AND AON UKRAINE INTRODUCES YIELD INDEX INSURANCE PROGRAM
The leading bank on agricultural producers’ crediting Agroprosperis Bank together with the leader in agricultural insurance ARX Company (ARX IC JSC) and the largest insurance broker in Ukraine Aon Ukraine LLC introduced a joint yield index insurance program for small and medium agribusiness.
The insurance product is absolutely simple and adapted to the needs of small agricultural producers, the main clients of the bank, as it does not require a visit to the field for crop assessment and the provision of additional documents.
According to Sergiy Schepanskiy, Chairman of the Board of Agroprosperis Bank, for 5 years the Bank has been financing mainly small and medium agribusinesses, so it fully understands the specifics of their activities and always offers its borrowers products most adapted to their business and current situation. "Today, after an almost snowless winter and dry spring, when the fields lack moisture, under quarantine, as well as export and import restrictions, we should support our customers and protect them from the risk of crop failure with a convenient and effective tool," - said Sergiy Schepanskiy.
Meanwhile, Oleksiy Grinchenko, CEO of Aon Ukraine LLC, noted that Aon was delighted to cooperate with Agroprosperis Bank and ARX Insurance Company in creating a new insurance product. He also added the following: "With great pleasure, we are ready to use our international experience for implementation of successful new and competitive solutions to protect Ukrainian companies and agricultural risks minimization ". The Director General noted the great experience of AON Ukraine LLC in agricultural risk insurance, including both classical risks and parametric insurance. The company is one of the first in Ukraine, that has started to implement index insurance solutions for agricultural enterprises, and now agricultural insurance is one of its top priorities. According to Oleksiy Grinchenko AON sees great potential in the use of parametric solutions, as the product is quite simple and understandable, and provides for quick compensation in case of loss.
Andriy Peretyazhko, Chairman of the Board of ARX Insurance Company, noted the following: “Thanks to the joint efforts of professional market participants, primarily insurance companies, brokers and banks, we will be able to change the stereotypes of Ukrainian agricultural producers and reduce distrust in agricultural insurance accumulated over many years. Together with such partners as Aon Ukraine and Agroprosperis Bank, we have made every effort to make the product as simple and understandable as possible for agricultural producers. Customers will be able to issue an agricultural insurance policy in the branch of Agroprosperis Bank, including getting financing. It should be noted that the process of settlement of possible losses is as simple and fast as possible. We take care of our clients and most of the processes have been transferred into online regime.”
About Agroprosperis Bank
Agroprosperis Bank (ap-bank.com) is a bank with 100% foreign capital owned by NAP II investment fund managed by NCH Capital Inc. (USA). The fund's investors are well-known international institutions of the USA and Europe, in particular the European Bank for Reconstruction and Development (EBRD). Agroprosperis Bank is a specialized bank, which focuses on lending to small and medium agricultural producers. AP BANK has been the first among Ukrainian banks to lend to agrarian receipts, simplifying access to financing for producers who do not have enough collateral to obtain the classic loan in the required amount.
Aon plc (NYSE:AON) is a leading global professional services firm providing a broad range of risk, retirement and health solutions. Our 50,000 colleagues in 120 countries empower results for clients by using proprietary data and analytics to deliver insights that reduce volatility and improve performance. Aon in Ukraine has over 25 years of work experience in the Ukrainian market. Aon is the largest insurance and reinsurance broker in Ukraine, with a presence in 3 cities - Kyiv, Lviv and Odesa. The company provides services to over 430 clients in Ukraine.
ARX Insurance Company is the absolute leader of the insurance market of Ukraine in 2019, according to the National Commission for State Regulation of Financial Services Markets. The company has been successfully operating in the Ukrainian market for 25 years, 11 of which under the AXA Insurance brand name. Since 2019 ARX is a part of Fairfax Financial Holdings, an international insurance holding operating in 40 countries. The number of ARX contracts was 1.9 million in 2019. The company has 70 offices in different cities of Ukraine, a partner network of 360 service stations, more than 1530 insurance agents. On average, the company pays out UAH 4 mln. per day to its clients.