HEAD OFF LEGISLATIVE AFFAIRSHEAD OFF LEGISLATIVE AFFAIRS

ATTACK ON BUSINESS SURVIVAL OF FARMERS CREATES MARKET VOLATILITY

EU – MEMBER STATES ARE FINDING EU – MEMBER STATES ARE FINDING SOLUTIONS TO TACKLE NATURAL RISKS, MARKET SOLUTIONS TO TACKLE NATURAL RISKS, MARKET INSTABILITY IN AGRICULTURALINSTABILITY IN AGRICULTURAL

EUROPEAN LEGISLATION PERMITS IN ACCORDANCE EUROPEAN LEGISLATION PERMITS IN ACCORDANCE WITH CERTAIN CONDITIONS AID - EITHER EU OR WITH CERTAIN CONDITIONS AID - EITHER EU OR

FROM MEMBER STATES – TO REDUCE CLIMATE RISKSFROM MEMBER STATES – TO REDUCE CLIMATE RISKS

MARKET

ORIENTETED CAPGLOBALISATION

LIBERALISATION

FARMERS ARE AWARE OF KEY FACTORSFARMERS ARE AWARE OF KEY FACTORS

QUALITY OF PRODUCEQUALITY OF PRODUCE

CERTIFICATIONCERTIFICATION

PUBLIC HEALTHPUBLIC HEALTH

RELATIONS WITH CONSUMERSRELATIONS WITH CONSUMERS

REDUCTION IN PUBLIC EXPENDITURE REDUCTION IN PUBLIC EXPENDITURE

NEED FOR A LEVEL PLAYING FIELD IN TERMS NEED FOR A LEVEL PLAYING FIELD IN TERMS OF PUBLIC AND PRIVATE SUBSIDY OF PUBLIC AND PRIVATE SUBSIDY

AGRICOLTURAL POLICY MUST VALUEAGRICOLTURAL POLICY MUST VALUE

QUALITY OF PRODUCE QUALITY OF PRODUCE ORIGIN ORIGIN LOCAL LINKS LOCAL LINKS

ENSURET HIGHEST INCOMES TO ENSURET HIGHEST INCOMES TO FARMERS AND GIVE THEM ADDED FARMERS AND GIVE THEM ADDED

VALUE WHICH CONSUMERS VALUE WHICH CONSUMERS PERCEIVE PERCEIVE

FARMERS HAVE DEVELOPED MORE FARMERS HAVE DEVELOPED MORE SUITABLE STRATEGIES TOSUITABLE STRATEGIES TO

REDUCE COSTSREDUCE COSTS

INCREASE PRODUCTIVITYINCREASE PRODUCTIVITY

INVEST IN THEIR KNOWLEDGE AND INVEST IN THEIR KNOWLEDGE AND TRAININGTRAINING

USE FINANCIAL TECHNIQUES TO MANAGE USE FINANCIAL TECHNIQUES TO MANAGE RISKSRISKS

FARMERS OFTEN UNDERESTIMATE FARMERS OFTEN UNDERESTIMATE RISKSRISKS

THEY THINK OTHER SAFETY NETS THEY THINK OTHER SAFETY NETS EXISTEXIST

INSURANCE COMPANIES OFFER INSURANCE COMPANIES OFFER INSUFFICIENT COVERSINSUFFICIENT COVERS

FROM FROM

COMPENSATIONCOMPENSATION

TOTO

PUBLIC CONTRIBUTION TO COSTS OF PUBLIC CONTRIBUTION TO COSTS OF PREMIUMSPREMIUMS

IN 2004 STATE AID SYSTEM WAS MODIFIEDIN 2004 STATE AID SYSTEM WAS MODIFIED ACCORDING TO EU REGULATIONSACCORDING TO EU REGULATIONS

FINANCED BY THE STATE TO A LEVEL PERMITTED BY FINANCED BY THE STATE TO A LEVEL PERMITTED BY EUEU

IMPACT ANALYSISIMPACT ANALYSISEconomic Social Others

Budget (Cost) Administrative burdens Transfer Efficiency

Level and stability of farmincome

Coherence with other relevantpolicy objectives

Compatibility withinternational constraints Simplicity

FARMERS ASSOCIATIONS AGAINST FARMERS ASSOCIATIONS AGAINST CLIMATE RISKS CLIMATE RISKS

THE MAJORITY OF ITALIAN FARMERS THE MAJORITY OF ITALIAN FARMERS ARE MEMBERS ARE MEMBERS

OF THESE MUTUAL OF THESE MUTUAL ORGANISATIONS ORGANISATIONS

WHO SIGN CONTRACTS WITH WHO SIGN CONTRACTS WITH INSURANCE COMPANIESINSURANCE COMPANIES

SIGN CONTRACTSSIGN CONTRACTS

STUDY NEW SOLUTIONS ACCORDING STUDY NEW SOLUTIONS ACCORDING FARMERS’ REQUESTSFARMERS’ REQUESTS

PARTNERSHIP WITH PUBLIC PARTNERSHIP WITH PUBLIC ADMINISTRATION AND INSURANCE ADMINISTRATION AND INSURANCE

ASSISTANCE WITH MAKING CLAIMSASSISTANCE WITH MAKING CLAIMS

SOLVE ADMINISTRATIVE BURDENSSOLVE ADMINISTRATIVE BURDENS

ADVANCE PAYMENTS OF PUBLIC ADVANCE PAYMENTS OF PUBLIC CONTRIBUTIONS CONTRIBUTIONS

STRONGER BARGAINING POWER STRONGER BARGAINING POWER WHEN DEALING WITH INSURANCE WHEN DEALING WITH INSURANCE COMPANIES COMPANIES

DIRECT NEGOTIACION WITH DIRECT NEGOTIACION WITH INSURANCE COMPANIESINSURANCE COMPANIES

SPECIALISED HELP FOR EVALUATING SPECIALISED HELP FOR EVALUATING DAMAGES DAMAGES

February – MayFebruary – May signs contracts on behalf signs contracts on behalf of their members -Then farmers are insuredof their members -Then farmers are insured

June June CONDIFESA assists farmers who are CONDIFESA assists farmers who are dameged by several climatic eventsdameged by several climatic events

Oct.- Nov.Oct.- Nov. Farmers pay their share of total Farmers pay their share of total premiumpremium

Ex Total premium Ex Total premium 100 €100 €

Farmers’ share Farmers’ share 30%30%

Public subsidy Public subsidy 70%70%

1° week of dec. 1° week of dec. CONDIFESA pays total CONDIFESA pays total premium to I.C.. That is – in our ex. – 100 e. premium to I.C.. That is – in our ex. – 100 e. Then I.C. pay claims to farmers who are Then I.C. pay claims to farmers who are suffered damagessuffered damages

Jan. Jan. CONDIFESA asks for the contribution CONDIFESA asks for the contribution for them members (in our ex. 70% of 100 €)for them members (in our ex. 70% of 100 €)

Then, when public procedure has finished, Then, when public procedure has finished, CONDIFESA receives the public CONDIFESA receives the public contirbution.contirbution.

REDUCTION OF COSTS FOR FARMERSREDUCTION OF COSTS FOR FARMERS

BETTER ASSESSEMENT OF DAMAGES BETTER ASSESSEMENT OF DAMAGES TURNS TURNS TO ADVANTAGE FOR ALL MARKET PLAYERSTO ADVANTAGE FOR ALL MARKET PLAYERS

OPENING THE MARKET – NEW TYPE OF OPENING THE MARKET – NEW TYPE OF INSURANCE POLICY FOR THEIR MEMBERS SUCH INSURANCE POLICY FOR THEIR MEMBERS SUCH COVERAGE OFCOVERAGE OF

MULTIRISKSMULTIRISKS

PLURIRISKSPLURIRISKS

QUALITY DAMAGE TO FRUITQUALITY DAMAGE TO FRUIT

INTEGRATED SYSTEMINTEGRATED SYSTEM IN A WAY THAT WORKS WELL THE IN A WAY THAT WORKS WELL THE MANAGE AND CONTROL OF STATE AIDMANAGE AND CONTROL OF STATE AID

EFFICIENTLY DISTRIBUTION OF SUBSIDYEFFICIENTLY DISTRIBUTION OF SUBSIDY

TRANSPARENCY OF MANAGEMENT: INTERNAL AUDIT WITH TRANSPARENCY OF MANAGEMENT: INTERNAL AUDIT WITH PARTICIPATION OF MINISTERIUM AND MUNICIPALITY PARTICIPATION OF MINISTERIUM AND MUNICIPALITY

STATISTICS AND TECNICAL DATA ARE TRANSMIT TO STATISTICS AND TECNICAL DATA ARE TRANSMIT TO AGRICULTURAL RISKS DATA BANKAGRICULTURAL RISKS DATA BANK

STUDY INTO NEW TYPES OF POLICY MORE STUDY INTO NEW TYPES OF POLICY MORE INNOVATIVE AND SUITABLE FOR FARMERS’ INNOVATIVE AND SUITABLE FOR FARMERS’ NECESSITIESNECESSITIES

OBSERVATION AND PROPOSALS TO PUT INTO OBSERVATION AND PROPOSALS TO PUT INTO PRACTICE NEW POLICIESPRACTICE NEW POLICIES

STUDY OF MARKET DEVELOPMENT WITH ALL STUDY OF MARKET DEVELOPMENT WITH ALL INSURANCE OPERATORS (COMPANIES, BROKERS) INSURANCE OPERATORS (COMPANIES, BROKERS) AND RESEARCH INSTITUTES (UNIVERSITIES)AND RESEARCH INSTITUTES (UNIVERSITIES)

PUBLIC INSTITUTION WHO ADMINISTRATES PUBLIC INSTITUTION WHO ADMINISTRATES RISK REINSURANCE FUND “RISK REINSURANCE FUND “FRR”FRR” THAT THAT ENCOURAGES THE INTRODUCTION OF ENCOURAGES THE INTRODUCTION OF INNOVATIVE POLICIES. The activity of INNOVATIVE POLICIES. The activity of FRR FRR involves involves directlydirectly

I.C., that offer innovative coverage,applying two I.C., that offer innovative coverage,applying two types of reinsurance mechanisms (stop-loss, types of reinsurance mechanisms (stop-loss, quota-share)quota-share)

Involves Involves indirectly indirectly

F., who can benefit from financial advantages of F., who can benefit from financial advantages of taking out innovative coveragetaking out innovative coverage

INCOME INCOME policypolicy – There isn’t one at the moment

MULTIMULTI PERILPERIL ON YIELDS POLICYON YIELDS POLICY– COVERS CROP LOSS (QUANTITY PER CULTIVATED SURFACE AND ALSO QUALITY DAMAGES)

COMBINEDCOMBINED RISKS POLICYRISKS POLICY - COVERS DAMAGES TO CROPS AND STRUCTURES (greenhouses, etc.) CAUSED BY SEVERAL NATURAL DISASTERS

MULTI PERIL ON YELDS POLICYMULTI PERIL ON YELDS POLICY

LOSS OF PRODUCTION

Production yield as a reference

ALL HERBACEOUS CROPS – FRUIT – TREES – PLANTS SEED

MORE COMBINED EVENTS

hail,wind,frost,drought,floods

REINSURED BY FRR EINSURED BY FRR (MAX 90% FIXED FEES 20%)

- Herbaceous crops, fruit, greenhouses, trees, seed plants, structures

- Two or more defined events: hail, frost, drought,…combined

- Damage to production

POLICY COVERS POLICY COVERS

CATTLE AND BUFFALO FARMS AGAINST MAJORITY CATTLE AND BUFFALO FARMS AGAINST MAJORITY OF ANIMAL DISEASES SUCHOF ANIMAL DISEASES SUCH

FOOT AND MOUTH DISEASE – BRUCELLOSIS – FOOT AND MOUTH DISEASE – BRUCELLOSIS – TUBERCOLSIS – ENZOOTIC LEUKOSIS - TUBERCOLSIS – ENZOOTIC LEUKOSIS - PLEUROPNEUMONIA PLEUROPNEUMONIA

POLICY COVERS POLICY COVERS

THE VALUE OF THE ANIMAL NOT COMPENSATABLE THE VALUE OF THE ANIMAL NOT COMPENSATABLE BY OTHER STATE CONTRIBUTION BY OTHER STATE CONTRIBUTION

LACK OF REVENUE FOR THE STOPPAGING PERIOD LACK OF REVENUE FOR THE STOPPAGING PERIOD OF THE PRODUCTIONOF THE PRODUCTION

COSTS OF DISPOSING OF DEAD ANIMALS COSTS OF DISPOSING OF DEAD ANIMALS

INTERACTION BETWEEN PUBLIC AND PRIVATE OPERATORS

INTERACTION BETWEEN ALL THE MARKET PLAYERS

PRIVATE SECTOR

FARMERS INSURANCE

PUBLIC

MINISTERE, REGIONS, ISMEA

PUBLIC

MINISTRY ,

REGIONS, ISMEA

INSURANCE AND REINSURANCE REPRESENTED INSURANCE AND REINSURANCE REPRESENTED FROM FROM ANIAANIA (NATIONAL ASSOCIATION OF I.C.)(NATIONAL ASSOCIATION OF I.C.)

FARMERS ARE REPRESENTED BY FARMERS ARE REPRESENTED BY COLDIRETTI COLDIRETTI AND AND OTHER PROFESSIONAL BODIES, BY THE OTHER PROFESSIONAL BODIES, BY THE COOPERATIVES ASSOCIATION AND BY COOPERATIVES ASSOCIATION AND BY ASNACODIASNACODI (ASSOCIATION OF CONSORZI DIFESA)(ASSOCIATION OF CONSORZI DIFESA)

MAKES PROPOSAL TO THE

PUBLIC POWERS

REGARDING ANNUAL

INSURANCE PLAN

FACILITATES

RELATIONS

BETWEEN INTERESTED

PARTIES

NEW SOLUTIONS OBSERVATION OF THE MARKET

MAKES FARMERS AWARE OF INNOVATION

DIRECT RESEARCH ENCOURAGES COMPETITIONTO FARMERS NECESSITIES

FIND SOLUTIONS TO DEVELOP CONTRACTS WITHOUT PUBLIC SUPPORT

INSURANCE COMPANIESINSURANCE COMPANIES

FARMERSFARMERS

CONSORZI DIFESA CONSORZI DIFESA

FOR THEIR MEMBERSFOR THEIR MEMBERS

CAN DRAW UP CONTRACTS FREELYCAN DRAW UP CONTRACTS FREELY