THE EVOLUTION OF AGRICULTURAL INSURANCE MARKET

Agricultural insurance helps to stabilise farming income and promote investment in agriculture. On the other hand, this products manages risks in the agricultural food value chain. Using agricultural insurance, the farmers in emerging markets can makes the jump from subsistence farming to sustainable farming. Subsidising agricultural insurance, in economic crisis , offers the benefit of encouraging farmers to access credit (seasonal loans) and invest in enhanced production and achieve increased yields. In many emerging markets where infrastructure is still underdeveloped, it can also be leveraged to encourage investment in storage and transportation, distribution and other logistics services. In the context of developed economies, the low and middle income countries, this article examines the evolution of agricultural insurance markets. The analysis of the agricultural insurance market highlighted the necessity of applying measures of improving the insurers’ activity.