Development analysis and a system solution design for agricultural insurance in CR

Abstract

Agricultural insurance is a sophisticated device for elimination of some risks in the agricultural production. In spite of its important role, its level is still unsatisfactory. The analyses carried out so far, demonstrated an astonishing drop in the volume of insurance premiums prescribed for the agricultural insurance commodity during 1991–1995. The second half of the Nineties brought a stagnation in its levels and the situation has not been changed so far. Since 2000 the State keeps supporting directly or indirectly the agricultural insurance by means of subsidies. Currently the support materiali­zes through the PGRLF. In spite of this, the current levels of insuredness in such a specific and strategic area as the agriculture represents are low, and the agricultural insurance is not a convincing factor of risk management in the agricultural production, still. A model has been designed for the solution of agricultural insurance in CR, based on the analysis carried out, on professional consultations and international experience. The model assumes setting up a Fund for uninsurable risks, into the coffers of which the producers, their unions, commercial insurers as well as the State would contribute. The model would be able to manage calamity situations commercially uninsurable.

Keywords

• agricultural insurance
• agricultural production
• risk management
• insuredness
• subsidies
• uninsurable risks