Property risk management by insurance companies in agricultural business practice

Baranyi, Aranka – Pataki, László

Keywords: risks, loss, agricultural insurance, insurers

On the basis of our investigations we determined that the insurance profession has developed a process for loss estimation and adjustment for those engaged in agricultural activities and offers a wide range of individual constructions, despite which, the proportion of agricultural insurance within the total insurance market can be said to be minimal. The main reason for this is the termination of subsidies designed to motivate insurance. The low levels of income in farming, however, cannot bear even the relatively small insurance fees.

Compensation for losses caused by natural disasters should not, however, be borne solely by farmers. The State should once again take on a role in the system, not necessarily in the form of direct fee subsidies, rather by offering supplementary insurance alongside the insurance companies’ indemnification.

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